Khaberni - American court documents revealed one of the largest cases of smuggling advanced technologies, after an international network was accused of attempting to smuggle sophisticated Nvidia-produced artificial intelligence chips into China, valued at $160 million, in direct violation of American national security laws.
On December 8, federal prosecutors in Texas announced the details of the investigation named "Operation Gatekeeper", which did not target drugs or stolen goods, but a secret network supplying banned Graphics Processing Units (GPUs), essential to the global artificial intelligence race.
Chips leading the artificial intelligence race
According to the US prosecution, the network attempted to smuggle the H100 and H200 chips, among the most powerful processors used in military and civilian artificial intelligence applications, to China between October 2024 and May 2025, challenging the strict restrictions imposed on exporting this sensitive technology, according to a report published by "CNBC" and reviewed by "Al Arabiya Business".
The authorities confirmed that the operation involved people entering the United States illegally, creating fictitious companies, and a secret warehouse in New Jersey, which was infiltrated by an undercover agent working for the American government.
Manipulation in shipping and changing logos
During the investigation, an undercover agent was sent to a warehouse in Secaucus, New Jersey, where he observed the suspects relabeling "Nvidia" chips with fake trademarks for a fictitious company named "Sandkayan".
Shipping documents were also manipulated, with the chips described as transformers or electronic control units for disguise.
On May 28, the operation reached its peak when three trucks arrived at the warehouse to transport the smuggled chips.
According to intercepted text messages, one of the drivers involved informed that the police had begun inquiring about the destination of the shipment, to which the conspirators responded with explicit instructions: "Say you know nothing".
Minutes later, one of the culprits sent an urgent message to the group: "Dissolve the chat group and delete everyone".
Shortly thereafter, the federal authorities raided the location and seized the equipment, preventing it from being shipped to China.
American-Chinese struggle over electronic brains
This case reflects the intensity of the technological conflict between the United States and China to control advanced chips viewed as keys to the global economy in the future.
Despite Beijing's attempts to develop a local market for chips, it still heavily relies on Nvidia technologies.
Ray Wang, an analyst at SemiAnalysis, says that currently, over 60% of China's leading artificial intelligence models rely on Nvidia hardware, adding that the company's dominance is not only in hardware but also includes software, making catching up a difficult challenge.
Continuous smuggling despite restrictions
This case comes amid a series of similar cases, wherein the New American Security Center estimated that between ten thousand to hundreds of thousands of artificial intelligence chips were smuggled into China during the year 2024 alone.
In her comment, Nvidia confirmed that US export systems are strict and comprehensive, and even the resale of old chips is subject to intense scrutiny, emphasizing its ongoing cooperation with the government to prevent the smuggling of used chips.
Presidential statement complicates the case
Yet the irony came on the same day the investigation was revealed when US President Donald Trump announced on his platform "Truth Social" that exporting H200 chips to China was allowed, provided that the United States received 25% of the sales value, with a continued ban on newer chips like Blackwell and Rubin.
This statement complicated the course of the case, as defense lawyers quickly referenced it to challenge allegations that smuggling these chips posed a national security threat.
However, experts believe that smuggling operations will not stop, confirming that the Chinese demand for advanced computing capabilities exceeds what official channels allow, amidst an unprecedented acceleration in the global artificial intelligence race.
