Jamie Spencer
Servers implicated in a recent fraud case in Singapore were supplied by U.S. firms and may have contained advanced Nvidia (NVDA.O) chips, according to Singapore’s Home Affairs and Law Minister K Shanmugam. The case, which led to charges against three individuals—including a Chinese national—has been linked to the transfer of AI chips to Chinese artificial intelligence firm DeepSeek.
Servers from U.S. Firms Possibly Contained Nvidia AI Chips
“We assessed that the servers may contain Nvidia chips,” Shanmugam told reporters on Monday. He stated that the servers were supplied by Dell Technologies (DELL.N) and Super Micro Computer (SMCI.O) to Singapore-based companies before being shipped to Malaysia. Authorities are still investigating whether Malaysia was the final destination.
The case is part of a broader investigation into 22 individuals and companies suspected of false representation, amid concerns that organized smuggling of AI chips to China is being routed through Singapore and other nations.
U.S. Investigating Potential Export Control Violations
Singapore has requested U.S. authorities to determine if the servers contained export-controlled items, offering to collaborate in any joint investigation. The U.S. is separately investigating whether DeepSeek has been using Nvidia chips that are restricted for export to China, according to Reuters.
Reuters previously reported that Chinese universities and research institutes had obtained Nvidia’s advanced AI chips embedded in server products from Dell, Super Micro, and Taiwan’s Gigabyte Technology (2376.TW).
Singapore’s Role in the AI Chip Supply Chain
Singapore is Nvidia’s second-largest market after the United States, accounting for 18% of its total revenue in the latest fiscal year, according to stock exchange filings. However, actual shipments to Singapore contributed less than 2% of Nvidia’s total revenue, as customers use the city-state as a hub for invoicing sales to other countries.
DeepSeek’s Alleged AI Chip Stockpile
Western AI industry figures, including Scale AI CEO Alexandr Wang, have claimed that DeepSeek possesses as many as 50,000 high-end Nvidia chips that are banned for export to China. However, Wang has not provided evidence to substantiate this claim or responded to Reuters’ requests for proof.
Growing Scrutiny on AI Chip Shipments
The Singapore fraud case highlights rising concerns over AI chip exports and potential violations of U.S. trade restrictions. As global authorities intensify their scrutiny, investigations into the movement of advanced AI chips are expected to expand, with possible ramifications for major tech firms and international trade relations.
