Singapore Police Break Up Large Smuggling Operation of Nvidia GPUs to China’s DeepSeek
Singapore Police Charge Men in Nvidia GPU Smuggling Case
Overview of the Allegations
The Singapore Police Force has initiated legal action against three individuals for their roles in a scheme to fraudulently re-export Nvidia graphics processing units (GPUs) to DeepSeek, a Chinese artificial intelligence company. This operation is alleged to have bypassed U.S. trade restrictions. Law enforcement, alongside customs officials, conducted raids at 22 different locations, resulting in nine arrests and the seizure of numerous documents and electronic evidence.
Nvidia’s Rising Revenue in Singapore
In a surprising turn of events, Nvidia registered Singapore as its second-largest source of revenue in 2024. This statistic raised suspicions that illegal re-exports of GPUs from Singapore to China might be the reason behind this sudden growth. Nvidia has denied these allegations, clarifying that billing locations can create an impression that does not accurately reflect the physical destination of the GPUs. The U.S. Department of Commerce is now looking into whether DeepSeek acquired these restricted GPUs to enhance its AI training models.
According to Nvidia, "Customers use Singapore to centralize invoicing while our products are almost always shipped elsewhere." The company also emphasized that shipments to Singapore accounted for less than 2% of its total revenue during the fiscal year 2025.
Details of the Charges
The accused individuals include Aaron Woon Guo Jie, aged 41, and Alan Wei Zhaolun, aged 49, both from Singapore. Prosecutors allege that they were part of a conspiracy to mislead a server supplier by falsely asserting that the equipment would not be resold to any unauthorized entities. A third individual, Li Ming, a 51-year-old Chinese national, has faced distinct charges linked to a comparable scheme from 2023, where he allegedly misrepresented the intended recipient of certain hardware.
If found guilty, these individuals could face a significant penalty of up to 20 years in prison, fines, or a combination of both. However, details regarding other arrested individuals have yet to be revealed, and it remains unclear whether further charges will be brought against them.
Impact of the Smuggling Operation
The situation raises broader concerns about the smuggling of high-performance technology. Reports indicate that intermediaries in Singapore have allegedly facilitated the illegal transfer of Nvidia GPUs to China, flouting U.S. export laws. These GPUs are essential for creating advanced AI systems, with companies like DeepSeek requiring vast numbers of powerful Nvidia Hopper GPUs to develop their large-language models. Meanwhile, smaller research institutions typically utilize clusters comprising smaller quantities of these processors.
Singapore Government’s Position
In light of these events, the Singaporean government has reaffirmed its stance on international trade and compliance with export regulations. Although Singapore is not legally obligated to enforce unilateral trade restrictions from other countries, officials expect businesses operating within its jurisdiction to adhere to applicable regulations.
Authorities have made it clear that Singapore will not condone any efforts to exploit its trading networks to evade international laws. As scrutiny continues surrounding the misappropriation of restricted technology, the country seeks to uphold its commitments to global trade standards. The ongoing investigation into this smuggling operation highlights the complexities of modern technology distribution and the challenges of regulating advanced equipment in a global marketplace.
