Daijiworld Media Network - Washington
Washington, Jun 2: A senior US lawmaker has raised concerns over whether advanced artificial intelligence chips made by Nvidia continue to reach China despite strict American export controls, citing recent criminal cases involving the alleged diversion of the company's technology through third countries.
Elizabeth Warren, the ranking Democrat on the Senate Banking Committee, has asked Nvidia to explain its export-control compliance measures and address questions about potential national security risks linked to the alleged movement of restricted AI hardware into China.
In a letter sent to senior executives at NVIDIA Corporation, Warren pointed to several US Department of Justice cases that allegedly involved the illegal transfer of Nvidia products, including advanced graphics processing units (GPUs), servers and AI chips subject to export restrictions.
The senator said the allegations raise concerns about whether Nvidia's leadership and board are exercising adequate oversight of compliance procedures designed to prevent restricted technology from reaching prohibited destinations.
Among the issues highlighted were cases involving the alleged diversion of millions of dollars worth of Nvidia chips through countries such as Malaysia and Thailand, attempted exports of advanced H100 and H200 AI processors, and shipments of servers containing restricted technology.
Warren argued that these allegations appear to conflict with public statements made by Nvidia CEO Jensen Huang, who has previously stated that there was no evidence of AI chip diversion and that the company's market share in China had effectively disappeared due to export restrictions.
The senator said federal export-control regulations require companies to exercise heightened scrutiny when there is a risk that products could be redirected to embargoed or restricted destinations. She stressed that exporters are expected to investigate warning signs and potential misuse of sensitive technology.
One of the cases referenced in the letter involves allegations against individuals associated with Supermicro, formally known as Super Micro Computer. Prosecutors alleged that more than $500 million worth of servers equipped with restricted Nvidia technology were exported to China through an unlawful scheme.
Warren noted that Supermicro remains part of Nvidia's partner network and has recently announced plans to further expand its collaboration with the chipmaker.
The senator also referred to reports suggesting that some Nvidia cloud-computing partners in Southeast Asia may have been linked to the diversion of export-controlled AI products. She specifically cited claims that Nvidia chips may have been routed through a Thailand-based company to entities connected with Alibaba Group.
According to Warren, bipartisan efforts in Congress to strengthen export controls could be undermined if companies fail to detect or prevent the diversion of restricted technology.
The letter asks Nvidia to clarify whether its audit committee considers these allegations a material legal or regulatory risk, whether recent criminal cases have prompted internal reviews of compliance practices, whether independent assessments have been conducted, and what evidence supports executives' assertions that there is no indication of product diversion.
Warren has requested a detailed response from the company by June 18, placing renewed focus on the challenges of enforcing US technology export restrictions amid intensifying competition in the global AI sector.