OBON Corp suspected of smuggling Nvidia chip servers to China
Updated
Updated · Bloomberg · May 8
OBON Corp suspected of smuggling Nvidia chip servers to China
7 articles · Updated · Bloomberg · May 8
People familiar with the matter said the Bangkok-based firm moved billions of dollars of Super Micro servers, with Alibaba Group among multiple end customers.
US prosecutors this year described a scheme in which Super Micro's co-founder allegedly used an unnamed Southeast Asian company and shifting third-party brokers to evade trade rules.
The company, identified by those people as prosecutors' "Company-1", is a key player in Thailand's national AI effort and the case centres on restricted advanced AI semiconductors.
If Chinese firms can legally access top AI chips via the cloud, are physical export bans an obsolete strategy?
After a co-founder’s arrest and past violations, can Super Micro truly be seen as just a victim?
Inside the $2.5 Billion Nvidia AI Chip Smuggling Network: Operations, Transit Routes, and U.S. Enforcement (2024–2025)
Overview
Between 2024 and 2025, U.S. export controls on Nvidia's advanced AI chips sparked a surge in sophisticated smuggling operations aimed at supplying China’s high demand for these critical technologies. Major conspiracies, such as the Supermicro server diversion and Operation Gatekeeper, used front companies, falsified documents, and complex repackaging tactics to illegally route billions of dollars’ worth of GPUs to China. Thailand emerged as a key transit hub due to weak customs and geographic proximity. Meanwhile, China responded by investing heavily in domestic AI chip development, exemplified by Huawei’s innovative alternatives. Despite intensified enforcement and legal actions, the ongoing tech rivalry ensures that illicit trade and policy challenges will persist.