Chinese customs authorities have launched a sweeping crackdown on unlicensed Nvidia chip shipments, with enforcement teams deploying at major ports to inspect hardware shipments.

An investigation has uncovered that a Singapore-based firm with Chinese ties bought $2 billion worth of restricted Nvidia GPUs through Inspur’s U.S. subsidiary to funnel them to Malaysia and Indonesia, where they were allegedly used by clients from China or resold to customers in the PRC.

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