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Singapore is investigating a fraud case involving servers potentially containing Nvidia (NASDAQ:NVDA) AI chips, which were supplied by U.S. firms before being transferred to Malaysia. Authorities suspect links to Chinese AI startup DeepSeek, which has been under scrutiny for allegedly obtaining restricted U.S. chips.
Home Affairs and Law Minister K Shanmugam confirmed that servers supplied by Dell Technologies (NYSE:DELL) and Super Micro Computer (NASDAQ:SMCI) were shipped through Singapore. While the final destination remains uncertain, Singapore has reached out to U.S. authorities to determine if the servers contained export-controlled items.
The case is part of a wider investigation into 22 individuals and companies suspected of falsifying information, amid growing concerns about AI chip smuggling to China. DeepSeek, which gained attention in January for its AI model, has denied allegations of illegally acquiring Nvidia's high-end chips, stating that it lawfully obtained H800 and A100 chips.
Dell emphasized its strict compliance with trade regulations and said it takes swift action against violations. Super Micro assured adherence to U.S. export control laws and investigates any unauthorized exports. Nvidia and DeepSeek have yet to respond to inquiries.
Singapore, Nvidia’s second-largest market after the U.S., accounted for 18% of its total revenue last fiscal year, though actual shipments to the country were less than 2%. The U.S. is also investigating whether DeepSeek used prohibited chips, as reports suggest Chinese universities and firms acquired advanced Nvidia AI chips embedded in Dell, Super Micro, and Gigabyte Technology servers.
As scrutiny over AI chip exports intensifies, authorities continue to investigate potential supply chain violations and regulatory breaches.
