back to article A billion dollars' worth of Nvidia chips fell off a truck and found their way to China, report says

An estimated $1 billion worth of smuggled high-end Nvidia AI processors have reportedly found their way onto the Chinese black market, despite the US government's strict restrictions on exports of the tech. The eyebrow-raising figure, which Nvidia has neither confirmed nor refuted, was revealed by the Financial Times, which …

  1. ShipyardTechWork

    Fell Off A Truck

    I was going to say the chips were borrowed by a member of the Teamsters Union until I realized it was China and not New York.

    1. PRR Silver badge

      Re: Fell Off A Truck

      My Fell Off A Truck story: riding my bike, I found a half-mile of 47 Ohm 1 Watt resistors in the gutter, with box. Picked-up hundreds of scuffed parts. For years after, any time I needed any sort of power resistor, I was twisting-up series/parallel arrays.

      1. elDog Silver badge

        Re: Fell Off A Truck

        And I'll bet those little buggers gave up with just a little resistance.

        Now, if you had found some mega capacitors....

      2. Anonymous Coward
        Anonymous Coward

        Re: Fell Off A Truck

        I would have loved to see your 100W, 1 Ohm dummy load. ;)

    2. druck Silver badge
      Pirate

      Re: Fell Off A Truck

      It would be a good idea to check that certain gulf states which have been buying vast amounts of B200 chips, can prove they are still within their borders.

  2. elDog Silver badge

    I'll bet there was some trump-coin involved in that transaction

    Only natural that a bit of profit should be made on an unfortunate truck accident.

  3. An_Old_Dog Silver badge

    Wondering ...

    ... if any of those China-bound AI chips were "speed-bin specials" or "failed-core falloffs". Less oomph, but way cheaper.

    I have an old-yet-works-fine PC with an AMD "Tri-Core" CPU. It was designed as a quad-core, but one of the cores failed in factory testing, so AMD disabled that core and sold the chip for a lower price.

  4. Falmari
    Devil

    50 percent surcharge. Bargain!

    "Chinese buyers of the illicit merchandise typically pay a 50 percent surcharge over what a legitimate customer in another region might spend."

    Bargain! 50% surcharge instead of 125% Tariff,

    1. CA Dave

      Re: 50 percent surcharge. Bargain!

      Indeed. Curious if there was a convenient laundry done of special funding for a 6-foot pallet of chips being offloaded and "misplaced" prior to final transfer logistics.

  5. Pascal Monett Silver badge

    "Jensen Huang, [..] sees China as a significant opportunity"

    Well yeah. A billion+ person market is obviously mouth-watering from a revenue perspective.

    What I find interesting is that he was born in Taiwan. You know, that country that China is gearing up to invade.

    Does that make him some sort of a traitor to his birthplace ?

    Of course, if China does invade and conquer Taiwan, then he will obviously be hailed as a visionary.

    Pfff.

    1. Like a badger Silver badge

      Re: "Jensen Huang, [..] sees China as a significant opportunity"

      "Jensen Huang, [..] sees China as a significant opportunity" Well yeah. A billion+ person market is obviously mouth-watering from a revenue perspective.

      Maybe he should stop seeing opportunities, make some real friends and enjoy himself. Huang's net worth is $148bn. At average S&P returns, if he divides his returns into keeping the $148bn up with inflation, and spends the rest, he'd still be able to spend over $26m every single day for the rest of his life, and still be leaving that $148bn uplifted for inflation to his undeserving sprogs.

      Or, he could keep on with his 14 hour days and seven day working weeks, work himself to death developing the "opportunity" of China, and leave the undeserving sprogs $500bn.

    2. martinusher Silver badge

      Re: "Jensen Huang, [..] sees China as a significant opportunity"

      At the risk of being even more tedious than usual** Taiwan isn't some kind of remote country but a Chinese island just off the coast. It became the location of the official government of the Republic of China when the Chinese government fled there after the 1949 formation of the PRC. It was recognized by the US (and so, I'd guess, everybody else that matters) as the Republic of China until 1979 when the reality of the PRC was finally acknowledged. Taiwan was left as an independent nation but also like other countries that neighbor communist (or formerly communist) nations it became a base for operations against those countries. Realistically, though, due to strong historical and cultural ties with the rest of China I expect Taiwan to eventually be reabsorbed. I just don't anticipate an 'invasion' because China itself is a very old society so is likely to just wait things out, letting culture and economics lead the way.

      (**Its just so difficult to get perspective on things with the Cold War mindset permeating everything.....)

      What I was originally going to post is a note just reminding people that there's no such thing as a hermetic border. Stuff just leaks, especially where there's money involved.

    3. Professor_Iron

      Re: "Jensen Huang, [..] sees China as a significant opportunity"

      He may be a traitor to his birthplace, but not a traitor to his nation. Apart from a small indigenous population there's not really a "Taiwanese identity" - they are all Han Chinese, the same people that you find in mainland China. Despite geopolitical tensions trade between the mainland and Taiwan is active - and enterpreneurs such as Foxconn's Terry Gou were calling for even closer co-operation for ages.

      Oh, and let's not forget that for most of it's history was a dictatorship. Which doesn't really help with building a strong, independent middle-class that could support the foundation of an autonomous Taiwan. Thus Taiwanese are often just as critical with their own history and the Kuomintang as with the Communist Party.

      So it's not as black and white as many Westerners would like to believe. When it comes to business opportunities they often feel like they are held back by the US & co. - who do not even recognize them in exchange.

  6. DrXym Silver badge

    Could have been worse

    At least they only lost 3 RTX 5090s

    1. TeeCee Gold badge

      Re: Could have been worse

      That would make RTX5090 availability in China rather better than it is elsewhere.

  7. boris9k3

    The chips are bugged buyer beware

  8. O'Reg Inalsin Silver badge

    Wrong risk?

    The rise of the CCPs military behemoth was far more enabled by their massive mfg and trade surplus then being desparate to buy gpus. GPUs are fungible, just look at ebay. OTH, Nvidia opening a research center in China - won't be long before the leaks enable Nvidias CCP backed direct competitor to put big dent in their profits, and the CCP would never make that kind of mistake so it's a one way information flow.

  9. Anonymous Coward
    Anonymous Coward

    Sure they're Nvidia?

    And not, say, Huawei hardware with an Nvidia label? So many goods found in China are counterfeits...

    1. Anonymous Coward
      Anonymous Coward

      Re: Sure they're Nvidia?

      To the downvoters: I have a $5 Chinese "Rolex". My father, asking for "something like this" (a DVD case) to ship with products, received an identical one down to the patent number. They sell "Apple" phones that are really Androids running emulations. There are even whole counterfeit Apple stores. (https://www.theregister.com/2011/07/21/fake_apple_stores/) So why would selling Chinese-made gear with an Nvidia label stuck on it be a surprise?

      1. Mishak Silver badge

        ST Support Forum

        Often has questions along the lines of "why doesn't your ST-Link connect to your processor for debugging?", with the reply being one or both are fakes.

        Some people then go on to complain about the lack of support...

  10. DustFox

    reading comments here

    You would think this is warzone right wing comments..

  11. Snowy Silver badge

    Not Surprised.

    An estimated $1 billion worth of smuggled high-end Nvidia AI processors have reportedly found their way onto the Chinese black market,

    I would be more surprised if the illegally smuggled things made their way on to anything other than the black market.

  12. Tarquinch

    Be fair, ChatCCP is a load of detritus.

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