Nvidia chips allegedly smuggled to China in $160 million export case

Federal prosecutors say a network attempted to send roughly $160 million worth of Nvidia H100 and H200 GPUs to China, and arrests and a guilty plea have been reported. The investigation, called Operation Gatekeeper, involved an undercover operation at a New Jersey warehouse.

Nvidia GPUs were the focus of a federal investigation that prosecutors made public in December. Authorities reported that an alleged smuggling network moved advanced H100 and H200 chips toward China despite U.S. export controls. Officials described the probe as involving front companies, falsified paperwork, and a warehouse in New Jersey where agents observed relabeling. The case unfolded as U.S. policy on certain Nvidia exports was adjusted, adding a new element to the legal discussion. What was reported: - Prosecutors in Texas unsealed documents describing Operation Gatekeeper and an attempt to export about $160 million in Nvidia H100 and H200 GPUs to China between October 2024 and May 2025. - An undercover agent is reported to have observed suspects relabeling GPUs and shipments at a Secaucus, New Jersey warehouse, and authorities say some shipments were intercepted on site. - Officials allege the scheme used false export classifications and shell companies to conceal the true nature of the goods. - The announcement of the investigation coincided with a presidential statement that certain H200 exports would be allowed under specified terms, while higher-end models remained restricted. - Prosecutors have announced arrests and a guilty plea in related matters, and industry analysts noted continued strong demand for Nvidia hardware in China. Summary: The case underscores tensions between U.S. export controls and overseas demand for advanced AI chips. Prosecutors have advanced legal actions and reported seizing equipment that might otherwise have been shipped. How recent policy announcements will affect ongoing prosecutions and export enforcement is undetermined at this time.