Singapore Investigates Potential Fraud in Nvidia AI Chip Shipments: Implications for Global Tech Industry

Singapore Fraud Probe: Are Nvidia AI Chips Being Misused?

Nvidia's cutting-edge AI chips have been the subject of a recent fraud investigation in Singapore, bringing into question their potential misuse in light of the stringent export controls in the United States. The investigation, which was launched at the beginning of 2025, focuses on whether servers that contained these chips, which were provided by Dell Technologies and Super Micro Computer, were routed through Singapore to unauthorized locations, possibly China. With global tech tensions simmering, this case underscores the challenges of policing cutting-edge semiconductors in a sprawling supply chain.

Tech world stunned as AI chip scandal unfolds; will Nvidia get caught in the industry-wide fallout?

Singapore has charged three men in a fraud case involving Nvidia's AI chips, creating tensions within the tech industry. Despite being a local probe, the investigation's geopolitical timing links to the US crackdown on AI chip exports to China. The whereabouts of the seized servers intensify concerns over the global AI and semiconductor supply chain. Singapore authorities have charged three men, including a Chinese citizen, in a case of fraud involving Nvidia's artificial intelligence (AI) chips, as per a report. The case has caused waves in the technology sector, as the servers, which were provided by Dell Technologies and Super Micro Computer, travelled from Singapore to Malaysia, but the ultimate destination of these powerful AI chips remains unknown, reported GuruFocus, While Singapore's Law Minister, K Shanmugam, claimed that the probe is local and not in response to the US, it is difficult to overlook the geopolitical timing, as per GuruFocus report. This probe comes as Washington increases its crackdown on AI chip exports to China, a move that's been under heavy scrutiny for months, according to the report. With US regulators already probing Chinese technology company DeepSeek's possible purchase of Nvidia chips via third-party intermediaries in Malaysia, Singapore, and the UAE, the case may fuel the fire, as per GuruFocus. GuruFocus reported that as Singapore works alongside US and Malaysian authorities to determine if the seized servers contained Nvidia's restricted chips, the industry is asking: where did these AI chips actually end up? If the servers didn't reach Malaysia as planned, the mystery has only deepened. The answer could have serious implications for the global AI and semiconductor supply chain, which has already been on edge due to tightening export controls and growing competition, as per the report. This probe is an alarm bell ringing for Nvidia, Dell, and Super Micro. Chipmaker Nvidia is already battling restricted by the US for its most sophisticated chips and is now facing even more scrutiny. The distribution channels of the company might be under investigation if these chips were being channelled through middlemen, as per the report. According to GuruFocus, Dell and Super Micro, vendors of the targeted servers, might also come under regulatory heat based on how things develop. What's the scandal involving Nvidia's AI chips? Singapore authorities charged three men, including a Chinese national, for fraud linked to Nvidia's AI chips. These chips, supplied by Dell Technologies and Super Micro Computer, were reportedly sent from Singapore to Malaysia, but their final destination remains unknown. Why is Singapore involved? Singapore launched an independent investigation into the fraud case, but its timing coincides with U.S. concerns about tech exports. The authorities are investigating if Nvidia's chips were illegally sold to China via intermediaries.

How Singapore became a hotspot for smuggled Nvidia AI chips

Singaporean police arrested three men on Thursday for allegedly smuggling Nvidia chips amid increasing scrutiny regarding China's acquisition of advanced semiconductors. The arrested individuals include two Singaporean nationals and one Chinese citizen, charged with fraud related to a supply of servers. The Singapore government is currently investigating whether servers manufactured by Dell and Supermicro contained restricted Nvidia chips that were diverted from their intended destination in Malaysia, according to Bloomberg. Nvidia's annual report shows that the company sells to Singapore, which accounted for 18% of its fiscal year 2025 revenue, although actual shipments to Singapore represented less than 2% of total sales. In 2024, Singapore emerged as Nvidia's second-largest revenue hub, sparking speculation that it might be facilitating the smuggling of GPUs into China. Nvidia has denied these claims, clarifying that billing locations do not necessarily indicate the final destination of GPUs and confirming that shipments to Singapore were minimal in terms of volume for fiscal year 2025. The U.S. Commerce Department's scrutiny intensified after DeepSeek, an AI startup, unveiled its open-source AI model and chatbot, raising concerns over its potential access to banned chips. A report by Channel News Asia suggested the existence of a smuggling network, with Singapore-based intermediaries allegedly funneling high-performance Nvidia GPUs into China in violation of U.S. export regulations. The investigation into these operations is ongoing and aims to assess the full scale of the illicit activity. DeepSeek reportedly relies on tens of thousands of Nvidia Hopper GPUs, such as models H100, H20, and H800, while smaller research entities may utilize fewer units. Last week, the Singapore government stated it is not obligated to enforce unilateral foreign export limits but expects companies to comply with relevant regulations. Officials emphasized that exploiting the country's trade system to bypass global restrictions will not be tolerated. The arrests in Singapore follow a U.S. announcement a month prior regarding an investigation into potential collaboration between DeepSeek and Singaporean partners to acquire Nvidia chips. Nvidia clarified its role, stating, "We use Singapore as a hub for centralized invoicing, but our products are typically shipped elsewhere." Singaporean authorities are now seeking additional information from Malaysia and the U.S. to ascertain the final destination of the Dell and Supermicro servers, as the purchasers reportedly misled suppliers regarding the equipment's ultimate endpoint, according to Law Minister K. Shanmugam. This investigation raises the possibility of increasing U.S. scrutiny on equipment exports from American companies, which could impact sales growth. The development occurs as investors express caution ahead of the planned implementation of higher U.S. tariffs on goods from China, Mexico, and Canada. In the wake of the arrests, Nvidia's stock experienced an 8.7% decline on Monday, while Super Micro shares dropped 13%, and Dell fell by 7%. Intel's stock closed down 4.2%, reversing a prior gain attributed to a report about potential improvement in its chip manufacturing business. Shares of Broadcom fell over 6% ahead of its earnings report, while Taiwan Semiconductor Manufacturing Corp. (TSMC) saw a 4.2% decline in its U.S.-traded shares.

NVIDIA AI servers used in Singapore allegedly using banned AI GPUs smuggled through Malaysia

TL;DR: Singapore has charged three men with smuggling NVIDIA AI GPUs to Chinese firm DeepSeek. The AI servers, supplied by Dell and Super Micro, were allegedly moved from Singapore to Malaysia. Authorities are investigating with US cooperation to determine if export control items were involved. The case highlights scrutiny on AI server sales. AI servers have been used in a fraud case that Singapore announced last week, with NVIDIA AI GPUs that were supplied by US companies like Dell, with banned AI chips from entering China according to a government minister on Monday. Singapore has charged three men with a fraud case involving smuggling NVIDIA AI GPUs from the city-state to Chinese AI firm DeepSeek. Channel News Asia reports that the cases were linked to the alleged movement of NVIDIA chips from Singapore to be used by DeepSeek, "without identifying its source" reports Reuters. Singapore's Home Affairs and Law Minister K Shanmugam told reporters on Monday that AI servers involved in the case were supplied by Dell Technologies and Super Micro Computer, before they were sent to Malaysia. He said: "whether Malaysia was the final destination... we do not know for a certain at this point" adding that authorities were investigating the case independently after an anonymous tip-off. He also said that Singapore has asked US authorities if the AI servers contained US export control items -- NVIDIA AI GPUs -- and that it would work with them on any joint investigation going forward. NVIDIA relies on companies like Dell and Super Micro to make its AI servers containing its AI GPUs, but whether those companies sell the servers directly, or through middlemen, to data center operators around the world is up to them. But now, these systems are under scrutiny in Malaysia, and now Dell, Super Micro, and NVIDIA are possibly in some trouble. Back in December 2024, The Information reported that NVIDIA asked Super Micro and Dell to audit their customers in Southeast Asia to verify that they still possessed NVIDIA-powered AI servers they purchased, with the outlet citing a person close to the US Department of Commerce.

Singapore Probes Potential Fraud in Nvidia AI Chip Shipments

Singapore is investigating whether Dell Technologies Inc. and Super Micro Computer Inc. servers shipped to Malaysia housed Nvidia Corp. chips barred from China, outlining a case that's highlighted the role of middlemen in funneling high-end semiconductors. The country's law minister on Monday outlined specifics of the probe after local media reported police arrested several people for their alleged roles in procuring and shipping Nvidia chips in violation of US sanctions. They stand accused of misleading server suppliers of the actual end-users of the hardware, which were shipped from Singapore to Malaysia, Law Minister K Shanmugam told reporters on Monday. Authorities are now investigating if the servers, made by Dell and Super Micro, made their way to other countries, he said.

Singapore charges three with fraud that media link to Nvidia chips

Singapore charged three men with fraud in a case domestic media have linked to the movement of Nvidia's advanced chips from the city state to Chinese artificial intelligence firm DeepSeek. The United States is investigating if DeepSeek, the Chinese company whose AI model's performance rocked the tech world in January, has been using US chips that are not allowed to be shipped to China, Reuters reported earlier. The Singapore case is part of a broader police investigation of 22 individuals and companies suspected of false representation, amid concerns that organised AI chip smuggling to China has been tracked out of nations such as Singapore. Broadcaster Channel News Asia said it understood the cases were linked to the alleged movement of Nvidia chips from Singapore to be used by DeepSeek, without identifying its source. Singapore's government did not immediately respond to email queries whether the charges were linked to Nvidia and DeepSeek. Charge-sheets accused two Singaporeans, identified as Aaron Woon Guo Jie, 41, and Alan Wei Zhaolun, 49, with criminal conspiracy to commit fraud on a supplier of servers in 2024. They did this "by fraudulently making a false representation that the items would not be transferred to a person other than the authorised ultimate consignee of end users", the court papers added. The third person charged is Chinese national Li Ming, 51, accused of committing fraud on a supplier of servers in 2023 by claiming a Singapore-registered company Luxuriate Your Life Pte Ltd would be the end user of the items. DeepSeek, Nvidia and Luxuriate Your Life did not immediately reply to requests for comment. If found guilty of the offences, the men could face penalties of a jail term of up to 20 years or a fine or both. The police and charge documents did not elaborate on the items involved in the case, or identify the supplier of servers. On Thursday, police said in a statement they had arrested nine people in a joint operation with customs authorities on Wednesday, raiding 22 locations from which they seized documentary and electronic records. Singapore is Nividia's second-biggest market after the United States, accounting for 18% of its total revenue in its latest fiscal year, a recent filing by the chipmaker shows. Actual shipments to the Asian trading hub, however, contributed less than 2% of total revenue, as customers use it as a centre for invoicing sales to other countries. Last week, Singapore's foreign minister vowed to enforce multilateral export control regimes, saying the city state would not tolerate evasion, deception, false declarations or miscounting.

Servers used in Singapore fraud case may contain Nvidia chips, minister says

SINGAPORE (Reuters) - Servers used in a fraud case that Singapore announced last week were supplied by U.S. firms and may have contained Nvidia's advanced chips, a government minister said on Monday. Singapore last week charged three men with fraud in a case local media linked to the movement of Nvidia's AI chips from the city-state to Chinese artificial intelligence firm DeepSeek. Broadcaster Channel News Asia said it understood the cases were linked to the alleged movement of Nvidia chips from Singapore to be used by DeepSeek, without identifying its source. Singapore's Home Affairs and Law Minister K Shanmugam told reporters on Monday that the servers involved in the case were supplied by Dell Technologies and Super Micro Computer before they were sent to Malaysia. "Whether Malaysia was the final destination ... we do not know for certain at this point," he said, adding the authorities were investigating the case independently after an anonymous tip-off. He also said Singapore has asked the U.S. authorities if the servers contained U.S. export control items, and told them it would work with them in any joint investigation. The United States is investigating if DeepSeek, the Chinese company whose AI model's performance rocked the tech world in January, has been using U.S. chips that are not allowed to be shipped to China, Reuters reported earlier. Reuters also reported last year that Chinese universities and research institutes obtained Nvidia's advanced AI chips embedded in server products made by Dell, Super Micro and Taiwan's Gigabyte Technology. (Reporting by Bing Hong Lok; Editing by Miyoung Kim and John Mair)

Servers used in Singapore fraud case may contain Nvidia chips, minister says

SINGAPORE, March 3 (Reuters) - Servers used in a fraud case that Singapore announced last week were supplied by U.S. firms and may have contained Nvidia's (NVDA.O), opens new tab advanced chips, a government minister said on Monday. Singapore last week charged three men with fraud in a case local media linked to the movement of Nvidia's AI chips from the city-state to Chinese artificial intelligence firm DeepSeek. Broadcaster Channel News Asia said it understood the cases were linked to the alleged movement of Nvidia chips from Singapore to be used by DeepSeek, without identifying its source. Singapore's Home Affairs and Law Minister K Shanmugam told reporters on Monday that the servers involved in the case were supplied by Dell Technologies (DELL.N), opens new tab and Super Micro Computer (SMCI.O), opens new tab before they were sent to Malaysia. "Whether Malaysia was the final destination ... we do not know for certain at this point," he said, adding the authorities were investigating the case independently after an anonymous tip-off. He also said Singapore has asked the U.S. authorities if the servers contained U.S. export control items, and told them it would work with them in any joint investigation. The United States is investigating if DeepSeek, the Chinese company whose AI model's performance rocked the tech world in January, has been using U.S. chips that are not allowed to be shipped to China, Reuters reported earlier. Reuters also reported last year that Chinese universities and research institutes obtained Nvidia's advanced AI chips embedded in server products made by Dell, Super Micro and Taiwan's Gigabyte Technology (2376.TW), opens new tab. Reporting by Bing Hong Lok; Editing by Miyoung Kim and John Mair Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Artificial Intelligence

Servers used in Singapore fraud case may contain Nvidia chips, minister says

Servers used in a fraud case that Singapore announced last week were supplied by U.S. firms and may have contained Nvidia's advanced chips, a government minister said on Monday. Singapore last week charged three men with fraud in a case local media linked to the movement of Nvidia's AI chips from the city-state to Chinese artificial intelligence firm DeepSeek. Broadcaster Channel News Asia said it understood the cases were linked to the alleged movement of Nvidia chips from Singapore to be used by DeepSeek, without identifying its source. Singapore's Home Affairs and Law Minister K Shanmugam told reporters on Monday that the servers involved in the case were supplied by Dell Technologies and Super Micro Computer before they were sent to Malaysia. "Whether Malaysia was the final destination ... we do not know for certain at this point," he said, adding the authorities were investigating the case independently after an anonymous tip-off. He also said Singapore has asked the U.S. authorities if the servers contained U.S. export control items, and told them it would work with them in any joint investigation. The United States is investigating if DeepSeek, the Chinese company whose AI model's performance rocked the tech world in January, has been using U.S. chips that are not allowed to be shipped to China, Reuters reported earlier. Reuters also reported last year that Chinese universities and research institutes obtained Nvidia's advanced AI chips embedded in server products made by Dell, Super Micro and Taiwan's Gigabyte Technology.

Singapore probes final destination of possible Nvidia chip servers

Singapore (AFP) - Servers that may contain AI-powering Nvidia chips shipped from the United States to Singapore ended up in Malaysia, but their actual final destination remains a mystery, the city-state's interior minister said Monday. The United States is cracking down on exports of advanced semiconductors to China, seeking to retain a competitive edge over the technology. But Bloomberg News reported in late January that US officials were probing whether DeepSeek bought advanced Nvidia semiconductors through third parties in Singapore, skirting Washington's restrictions. K. Shanmugam, who is also the law minister, said the route of the chips emerged in the course of an investigation of three men charged last week with fraud by making false representations. Local media have linked their cases to the alleged movement of Nvidia chips from Singapore to be used by Chinese AI firm DeepSeek. "Essentially, the case relates to servers with chips embedded in them coming into Singapore, and then from Singapore, they went to Malaysia," Shanmugam said. The servers were supplied to Singapore-based companies by US firms Dell and Super Micro, according to Shanmugam. "The question is whether Malaysia was a final destination or from Malaysia it went to somewhere else, which we do not know for certain at this point," he said. "But we assessed that there may have been false representation on the final destination of the servers." He said Singapore had asked both the US and Malaysia for more information. Pressed about links to Nvidia, Shanmugam said: "We assessed that the servers may contain Nvidia chips. I think that's the highest I can put it at, at this point." In January, DeepSeek released its R1 chatbot, shaking the global tech market and claiming its tool can match the capacity of top US AI products for a fraction of their costs.

Singapore probes final destination of possible Nvidia chip servers

Servers that may contain AI-powering Nvidia chips shipped from the United States to Singapore ended up in Malaysia, but their actual final destination remains a mystery, the city-state's interior minister said Monday. The United States is cracking down on exports of advanced semiconductors to China, seeking to retain a competitive edge over the technology. But Bloomberg News reported in late January that US officials were probing whether DeepSeek bought advanced Nvidia semiconductors through third parties in Singapore, skirting Washington's restrictions. K. Shanmugam, who is also the law minister, said the route of the chips emerged in the course of an investigation of three men charged last week with fraud by making false representations. Local media have linked their cases to the alleged movement of Nvidia chips from Singapore to be used by Chinese AI firm DeepSeek. "Essentially, the case relates to servers with chips embedded in them coming into Singapore, and then from Singapore, they went to Malaysia," Shanmugam said. The servers were supplied to Singapore-based companies by US firms Dell and Super Micro, according to Shanmugam. "The question is whether Malaysia was a final destination or from Malaysia it went to somewhere else, which we do not know for certain at this point," he said. "But we assessed that there may have been false representation on the final destination of the servers." He said Singapore had asked both the US and Malaysia for more information. Pressed about links to Nvidia, Shanmugam said, "We assessed that the servers may contain Nvidia chips. I think that's the highest I can put it at, at this point." In January, DeepSeek released its R1 chatbot, shaking the global tech market and claiming its tool can match the capacity of top US AI products for a fraction of their costs.

Servers Used in Singapore Fraud Case May Contain Nvidia Chips, Minister Says

SINGAPORE (Reuters) - Servers used in a fraud case that Singapore announced last week were supplied by U.S. firms and may have contained Nvidia's advanced chips, a government minister said on Monday. Singapore last week charged three men with fraud in a case local media linked to the movement of Nvidia's AI chips from the city-state to Chinese artificial intelligence firm DeepSeek. Broadcaster Channel News Asia said it understood the cases were linked to the alleged movement of Nvidia chips from Singapore to be used by DeepSeek, without identifying its source. Singapore's Home Affairs and Law Minister K Shanmugam told reporters on Monday that the servers involved in the case were supplied by Dell Technologies and Super Micro Computer before they were sent to Malaysia. "Whether Malaysia was the final destination ... we do not know for certain at this point," he said, adding the authorities were investigating the case independently after an anonymous tip-off. He also said Singapore has asked the U.S. authorities if the servers contained U.S. export control items, and told them it would work with them in any joint investigation. The United States is investigating if DeepSeek, the Chinese company whose AI model's performance rocked the tech world in January, has been using U.S. chips that are not allowed to be shipped to China, Reuters reported earlier. Reuters also reported last year that Chinese universities and research institutes obtained Nvidia's advanced AI chips embedded in server products made by Dell, Super Micro and Taiwan's Gigabyte Technology. (Reporting by Bing Hong Lok; Editing by Miyoung Kim and John Mair)

Singapore charges three with fraud that media link to Nvidia chips

SINGAPORE/BEIJING (Reuters) - Singapore charged three men with fraud in a case domestic media have linked to the movement of Nvidia's advanced chips from the city state to Chinese artificial intelligence firm DeepSeek. The United States is investigating if DeepSeek, the Chinese company whose AI model's performance rocked the tech world in January, has been using U.S. chips that are not allowed to be shipped to China, Reuters reported earlier. The Singapore case is part of a broader police investigation of 22 individuals and companies suspected of false representation, amid concerns that organised AI chip smuggling to China has been tracked out of nations such as Singapore. Broadcaster Channel News Asia said it understood the cases were linked to the alleged movement of Nvidia chips from Singapore to be used by DeepSeek, without identifying its source. Singapore's government did not immediately respond to email queries whether the charges were linked to Nvidia and DeepSeek. Charge-sheets accused two Singaporeans, identified as Aaron Woon Guo Jie, 41, and Alan Wei Zhaolun, 49, with criminal conspiracy to commit fraud on a supplier of servers in 2024. They did this "by fraudulently making a false representation that the items would not be transferred to a person other than the authorised ultimate consignee of end users", the court papers added. The third person charged is Chinese national Li Ming, 51, accused of committing fraud on a supplier of servers in 2023 by claiming a Singapore-registered company Luxuriate Your Life Pte Ltd would be the end user of the items. DeepSeek, Nvidia and Luxuriate Your Life did not immediately reply to requests for comment. If found guilty of the offences, the men could face penalties of a jail term of up to 20 years or a fine or both. The police and charge documents did not elaborate on the items involved in the case, or identify the supplier of servers. On Thursday, police said in a statement they had arrested nine people in a joint operation with customs authorities on Wednesday, raiding 22 locations from which they seized documentary and electronic records. Singapore is Nividia's second-biggest market after the United States, accounting for 18% of its total revenue in its latest fiscal year, a recent filing by the chipmaker shows. Actual shipments to the Asian trading hub, however, contributed less than 2% of total revenue, as customers use it as a centre for invoicing sales to other countries. Last week, Singapore's foreign minister vowed to enforce multilateral export control regimes, saying the city state would not tolerate evasion, deception, false declarations or miscounting. (Reporting by Xinghui Kok and Eduardo Baptista; Editing by Miyoung Kim and Clarence Fernandez)

Singapore Scheme May Have Funneled Nvidia Chips to DeepSeek

Three people, including one Chinese national, were charged with conspiracy to commit fraud. A local case of fraud in Singapore might be the tip of the iceberg for some international AI intrigue. According to Reuters, three people were charged with fraud for allegedly lying about the delivery of items to a server supplier. Local media reports indicate that those "items" may have been high-end Nvidia chips that may have gotten rerouted to Chinese artificial intelligence company DeepSeek. On the surface, the charges are pretty vague, albeit serious. Singaporeans identified as Aaron Woon Guo Jie and Alan Wei Zhaolun, along with Chinese national Li Ming were charged by the city-state's authorities for allegedly lying about supplying unidentified items to a server companyâ€"crimes that carry a penalty of up to 20 years in jail and a potential fine. But just beneath the surface appears to be a broader conspiracy. Per Reuters, Singapore's law enforcement has arrested a total of nine people in a joint operation carried out with customs. Those raids hit 22 different locations, where authorities reportedly seized documents and electronic records. And then there are the local media reports, which Reuters did not specifically confirm, that link the supposed fraudsters to DeepSeek. According to a report from Channel News Asia, the "items" in the fraud case were Nvidia chips, and their real final destination was allegedly China's AI firm that caused a whole lot of commotion earlier this year when it dropped a model that produced high-end performance despite spending significantly less on training. That would be a pretty big deal, considering those Nvidia chips are not allowed to be shipped to China due to sanctions against the nation. The scheme, if it proves to be what authorities seem to think it is, wouldn't be a total shock but more a confirmation of what some have believed to be happening for quite some time. Shortly after DeepSeek revealed its open-source AI model and chatbot, the US Department of Commerce started investigating whether the company was using chips that it wasn't supposed to have access to. Reuters reported last year that the Chinese military, state-run artificial intelligence research organizations, and universities have all purchased semiconductors that are supposed to be restricted for export by the US. The news of the arrests in Singapore comes just one month after officials in the US announced they were specifically probing whether DeepSeek was working with third parties in Singapore to get its hands on Nvidia chips. If the reports are to be believed, it appears they may have found their answer.

Singapore charges three with fraud that media link to Nvidia chips

SINGAPORE/BEIJING, Feb 28 (Reuters) - Singapore charged three men with fraud in a case domestic media have linked to the movement of Nvidia's (NVDA.O), opens new tab advanced chips from the city state to Chinese artificial intelligence firm DeepSeek. The United States is investigating if DeepSeek, the Chinese company whose AI model's performance rocked the tech world in January, has been using U.S. chips that are not allowed to be shipped to China, Reuters reported earlier. The Singapore case is part of a broader police investigation of 22 individuals and companies suspected of false representation, amid concerns that organised AI chip smuggling to China has been tracked out of nations such as Singapore. Broadcaster Channel News Asia said it understood the cases were linked to the alleged movement of Nvidia chips from Singapore to be used by DeepSeek, without identifying its source. Singapore's government did not immediately respond to email queries whether the charges were linked to Nvidia and DeepSeek. Charge-sheets accused two Singaporeans, identified as Aaron Woon Guo Jie, 41, and Alan Wei Zhaolun, 49, with criminal conspiracy to commit fraud on a supplier of servers in 2024. They did this "by fraudulently making a false representation that the items would not be transferred to a person other than the authorised ultimate consignee of end users", the court papers added. The third person charged is Chinese national Li Ming, 51, accused of committing fraud on a supplier of servers in 2023 by claiming a Singapore-registered company Luxuriate Your Life Pte Ltd would be the end user of the items. DeepSeek, Nvidia and Luxuriate Your Life did not immediately reply to requests for comment. If found guilty of the offences, the men could face penalties of a jail term of up to 20 years or a fine or both. The police and charge documents did not elaborate on the items involved in the case, or identify the supplier of servers. On Thursday, police said in a statement they had arrested nine people in a joint operation with customs authorities on Wednesday, raiding 22 locations from which they seized documentary and electronic records. Singapore is Nividia's second-biggest market after the United States, accounting for 18% of its total revenue in its latest fiscal year, a recent filing by the chipmaker shows. Actual shipments to the Asian trading hub, however, contributed less than 2% of total revenue, as customers use it as a centre for invoicing sales to other countries. Last week, Singapore's foreign minister vowed to enforce multilateral export control regimes, saying the city state would not tolerate evasion, deception, false declarations or miscounting. Reporting by Xinghui Kok and Eduardo Baptista; Editing by Miyoung Kim and Clarence Fernandez Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Artificial Intelligence Xinghui Kok Thomson Reuters Xinghui leads the Singapore bureau, directing coverage of one of the region's bellwether economies and Southeast Asia's main financial hub. This ranges from macroeconomics to monetary policy, property, politics, public health and socioeconomic issues. She also keeps an eye on things that are unique to Singapore, such as how it repealed an anti-gay sex law but goes against global trends by maintaining policies unfavourable to LGBT families. https://www.reuters.com/world/asia-pacific/even-singapore-lifts-gay-sex-ban-lgbt-families-feel-little-has-changed-2022-11-29/ Xinghui previously covered Asia for the South China Morning Post and has been in journalism for a decade.

Nvidia's unofficial exports to China face scrutiny after arrest of silicon smugglers in Singapore

Nvidia CEO Jensen Huang gives a keynote address at CES 2025, an annual consumer electronics trade show, in Las Vegas, Nevada, U.S. Jan. 6, 2025. Alarm bells went off in 2024 when Singapore unexpectedly emerged as Nvidia's second-largest revenue source. The disclosure fueled widespread speculation that Nvidia's artificial intelligence chips were being channeled to China. Those concerns intensified in January after China's DeepSeek burst onto the international AI scene due to the sophistication and reported cost-effectiveness of its model. DeepSeek's AI is trained on Nvidia's graphics processing units despite export restrictions designed to keep the technology out of China. Singapore has been working to dismantle a shadow network trafficking Nvidia's cutting-edge AI chips, and late last week, authorities there detained three people on charges of deliberately misrepresenting the final destination of U.S.-manufactured servers, likely containing Nvidia's highly sought-after chips. Singapore's Home Affairs and Law Minister K Shanmugam revealed Monday that servers from Dell and Super Micro Computer were shipped to Malaysia, raising the critical question: Was Malaysia truly the final destination? Nvidia declined to provide comment on any of these developments. Nvidia shares tumbled almost 8% on Monday and are now down 14% in 2025, a slide that's pushed the company's market cap below $3 trillion. Super Micro shares fell 11% on Monday, and Dell's stock was down about 6%. While Singapore has firmly rejected allegations of serving as a conduit to China, Nvidia highlighted a crucial distinction in what it means to be a customer in its annual report filed last week. Singapore accounted for 18% of Nvidia's total revenue, approximately $24 billion, in the fiscal year ended Jan. 28, based on "customer billing location," but less than 2% of revenue, about $473 million, in terms of products shipped to the country. "Customers use Singapore to centralize invoicing while our products are almost always shipped elsewhere," Nvidia said in its annual report. The arrests in Singapore demonstrate that a sophisticated network of resellers continues to operate despite increasing scrutiny. Analysts at Mizuho warn that any comprehensive ban on Nvidia chip exports to China could eliminate $4 billion to $5 billion from Nvidia's projected revenue for this fiscal year. The company said on its fourth-quarter earnings call that data center sales in China as a percentage of total data center revenue "remained well below levels seen on the onset of export controls." As digital borders harden between East and West, silicon smugglers may find new routes. But the race for AI dominance ensures this high-stakes game will continue, with implications far beyond corporate earnings.

Three People Allegedly Linked To Shipping NVIDIA's AI GPUs To China Charged By Singapore Police

This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy. Following reports of China's DeepSeek purportedly accessing NVIDIA's GPUs to train its artificial intelligence models from Singapore, authorities in the island nation have charged three men with fraud in connection with false representations related to product end use. DeepSeek's purported ability to significantly reduce AI training costs led to a massive stock market bloodbath in January after NVIDIA's shares lost nearly $600 billion in market value during a single day. A closer look at the firm's annual filings with the SEC revealed that a large portion of its revenue had come from Singapore, which led to speculation of chips from the country making it to China. According to the CNA, Singapore police and customs authorities arrested nine people in raids on Thursday. They also charged three people in connection with misrepresenting the end destination of products, reports the publication. After NVIDIA's SEC annual filings revealed last month that 22% of the firm's billings were to Singapore, the firm released a statement sharing that DeepSeek's breakthroughs were through Time Test Scaling. This technique, explained NVIDIA, was "leveraging widely-available models and compute that is fully export control compliant." The CNA's report shares that two of the three people charged in connection with a conspiracy to commit fraud on a server supplier are Singaporean nationals. The third is a Chinese national who is charged with committing fraud through false representation. The two Singaporeans were charged with shipping products to entities other than the "authorised ultimate consignee of end users" as they had outlined in their representations. The Chinese national has been charged with falsely representing that the products would be shipped to a company called Luxuriate Your Life. False representation is a serious crime in Singapore and can see those found guilty sentenced to a whopping 20 years in jail. After reports of NVIDIA's chips purportedly shipping to China via Singapore emerged, others claimed that the US government was investigating whether the GPUs were making their way to China via the island country. NVIDIA is prevented by US export control restrictions to ship most of its AI GPUs to China. The firm's shares dropped by a whopping 8% during trading today after market worries about the US government tightening its sanctions to prevent it from selling any chips to China. The firm's CEO Jensen Huang has asserted that AI models now need 100 times more computing power than older models due to improvements in reasoning technologies. As a result, NVIDIA is attempting to convince the Trump administration that any older chips that it sells to China will be unable to allow the country to surpass the US in AI capabilities.

Singapore Investigates Potential Fraud In Nvidia AI Chip Shipments. 'The Question Is Whether Malaysia Was A Final Destination' - NVIDIA (NASDAQ:NVDA), Dell Technologies (NYSE:DELL)

Singapore authorities have initiated an investigation into potential fraudulent activities related to the shipment of Nvidia Corp. NVDA chips. The chips, which are banned in China, were reportedly shipped to Malaysia via servers from Dell Technologies Inc. DELL and Super Micro Computer Inc. SMCI. What Happened: Singapore's Home Affairs and Law Minister K Shanmugam, provided details about the ongoing investigation following local media reports of several arrests. The arrests were connected to the suspected acquisition and export of Nvidia chips, which violated U.S. sanctions, as per a Bloomberg report The parties under investigation reportedly misled server suppliers about the actual users of the hardware. The hardware was shipped from Singapore to Malaysia, and authorities are now investigating whether the servers, manufactured by Dell and SMCI, were further shipped to other countries. "The question is whether Malaysia was a final destination or from Malaysia it went to somewhere else, which we do not know for certain at this point," said Shanmugam. The investigation is centered on the involvement of Singapore-based entities in possibly diverting Nvidia chips to China and other countries restricted by the U.S. This investigation follows a recent U.S. inquiry into whether the Chinese AI company DeepSeek circumvented U.S. chip restrictions with assistance from third parties in Singapore. Shanmugam did not particularly name DeepSeek and clarified that the investigation is independent of US export controls and was initiated by Singapore following an anonymous tipoff. The final destination of the servers is still being determined, with additional information requested from the U.S. and Malaysia. SEE ALSO: SMCI Co-Founder Cashes Out Millions In Stock A Day After Super Micro's Delayed Filings Why It Matters: This investigation comes on the heels of a recent incident where three men were charged with fraud in Singapore for allegedly smuggling Nvidia chips to China, bypassing U.S. export controls. The men were among nine people arrested when Singapore authorities raided 22 locations. The cases involved chips allegedly destined for Chinese AI firm DeepSeek, as reported by local media CNA, citing sources. Furthermore, according to a previous Reuters report, Chinese universities and research institutes acquired Nvidia's advanced AI chips through server products manufactured by Dell, Super Micro, and Taiwan's Gigabyte Technology. However, DeepSeek has denied the reports previously and acknowledged using Nvidia's H800 chips, which it was legally permitted to purchase in 2023, and also revealed a supercomputing AI cluster powered by Nvidia A100 chips. Meanwhile, the United States is already conducting a probe into whether DeepSeek has been using U.S. chips that are restricted from being shipped to China. The Trump administration is also evaluating plans to impose maximum limits on AI computing power exports to Southeast Asia and the Middle East, regions that U.S. officials believe are more susceptible to Chinese influence. READ MORE: Norwegian Purchases Ten Boeing Jets, Boosting Financial Flexibility Image via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. DELLDell Technologies Inc$103.200.43%OverviewNVDANVIDIA Corp$123.85-0.86%SMCISuper Micro Computer Inc$42.923.52%Market News and Data brought to you by Benzinga APIs

Police bust ring smuggling Nvidia GPUs to China-based DeepSeek: Report

Singapore Police Force have charged three men with fraud in a case involving allegedly illegal re-export of Nvidia GPUs to Chinese AI company DeepSeek, bypassing U.S. trade restrictions, reports ChannelNewsAsia. The police and customs authorities raided 22 locations, arrested nine individuals, and seized documents and electronic records, reports Reuters. When Singapore suddenly became Nvidia's second largest geographical source of revenue in 2024, many suspected that this happened because Nvidia's GPUs were illegally re-exported from Singapore to China. Nvidia denied all accusations saying that billing locations do not represent actual destination of GPUs. Still, the U.S. Commerce Department started investigation whether DeepSeek has acquired restricted American GPUs to train its AI models. "Customers use Singapore to centralize invoicing while our products are almost always shipped elsewhere," a statement by Nvidia reads. "Shipments to Singapore were less than 2% of fiscal year 2025 total revenue." However, it looks like the problem with smuggling high-performance Nvidia GPUs from Singapore to China exists and intermediaries in Singapore helped smuggle Nvidia GPUs for AI and HPC to China in violation of U.S. export laws. The accused include Singaporeans Aaron Woon Guo Jie, 41, and Alan Wei Zhaolun, 49. Prosecutors allege that in 2024, they conspired to deceive a server supplier by falsely claiming the equipment would not be resold to unauthorized parties. A third suspect, Li Ming, 51, a Chinese national, faces separate charges related to a similar scheme in 2023. Authorities claim he misrepresented the intended recipient of hardware, stating it was meant for a Singapore-based company, Luxuriate Your Life. If convicted, the suspects could face up to 20 years in prison, fines, or both. Authorities have not disclosed details about other arrested individuals or whether additional charges will be filed. While the arrests clearly indicate the involvement of Singapore-based groups in smuggling restricted high-performance Nvidia GPUs to China, the extent of their operations are yet to be determined. Companies like DeepSeek need tens of thousands of Nvidia Hopper GPUs (H100, H20, H800) to train its large-language models. However, smaller research institutions run smaller clusters containing tens or hundreds of such processors. Last week Singapore's government emphasized that while it is not legally bound to enforce unilateral export restrictions imposed by other nations, it expects businesses operating within its borders to comply with such regulations where applicable. Authorities have reiterated that the country does not tolerate attempts to exploit its trade networks to circumvent international controls.

Nvidia Chips Smuggled To China? 3 Men Charged In Singapore Amid US Export Crackdown - NVIDIA (NASDAQ:NVDA)

Three men were charged with fraud in Singapore on Thursday following raids linked to the alleged illegal movement of Nvidia Corp. NVDA chips to China, bypassing U.S. export controls. What Happened: The men were among nine people arrested when Singapore authorities raided 22 locations on Wednesday. The cases involve chips allegedly destined for Chinese AI firm DeepSeek, reported local media CNA, citing sources. Singaporeans Aaron Woon Guo Jie, 41, and Alan Wei Zhaolun, 49, were charged with criminal conspiracy to commit fraud on a server supplier. They allegedly falsely represented in 2024 that the items would not be transferred to unauthorized end users. Chinese national Li Ming, 51, faces a separate fraud charge for allegedly claiming in 2023 that a company called "Luxuriate Your Life" would be the end user. See Also: Palantir CEO Alex Karp Meets Keir Starmer As UK PM And Trump Push For Increased Defense Spending Amid Ukraine War Why It Matters: The raids follow media reports that intermediaries in Singapore were facilitating the movement of restricted Nvidia chips to China, circumventing U.S. export restrictions. The U.S. Commerce Department had reportedly been investigating whether DeepSeek has been using U.S. chips prohibited from export to China. This case emerges as Nvidia recently reported record quarterly revenue of $39.3 billion in the fourth quarter, up 78% year-over-year, with its data center segment generating $35.6 billion, up 93%. Despite the strong earnings report, Nvidia shares dipped Thursday as traders sold off following the results announcement. Nvidia CEO Jensen Huang recently highlighted the company's successful ramp-up of Blackwell AI supercomputers, achieving "billions of dollars in sales in its first quarter," as AI continues advancing "at light speed." Price Action: Nvidia closed at $120.15, down 8.48%. After hours, it rose 0.83% to $121.15, according to data from Benzinga Pro. Read Next: Anthony Scaramucci Says 'The Market Doesn't Like Trump Tariffs' -- Compares Trump To Hitler Appeaser For Coddling Putin And Berating Allies Image Via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. NVDANVIDIA Corp$121.15-7.72%OverviewMarket News and Data brought to you by Benzinga APIs