U.S. Authorities Dismantle $50M+ China-Linked AI Chip Smuggling Network Yesterday, the U.S. Department of Justice and FBI announced the results of “Operation Gatekeeper,” a major enforcement action targeting the illegal export of advanced NVIDIA AI processors (including H100 and H200 GPUs) to restricted destinations, primarily in China and Hong Kong. Key highlights from the announcement: • Over $50 million in high-performance GPUs and cash seized • Multiple arrests and guilty pleas, including individuals and companies that allegedly: • Falsified shipping documents and end-user certificates • Misdeclared ultimate destinations • Used straw purchasers and rebranded restricted chips under fake labels (e.g., “SANDKYAN”) • Routed payments through PRC-originated wire transfers As Assistant Attorney General John A. Eisenberg stated: “The advantage the United States enjoys in cutting-edge technology, such as the advanced computer chips that make modern AI possible, is the result of our engineers’ and scientists’ hard work and sacrifice.” This case underscores the growing intersection of export controls, national security, and the global race for AI supremacy. The U.S. continues to tighten restrictions on advanced semiconductors and AI hardware amid concerns over military and dual-use applications. A clear reminder that compliance isn’t just paperwork—it’s a frontline issue in geopolitics and technology leadership. #Semiconductors #AI #ExportControls #NationalSecurity #TechPolicy #SupplyChain (Story developing – sources: U.S. DOJ, FBI, court documents)