US scrutinizes Nvidia AI chip flows to China following state-backed procurement reports

US officials are increasing scrutiny into whether Nvidia overlooked red flags as high-performance AI chips continue reaching China through a multi-billion-dollar shadow trade. Chinese regulatory filings revealed that state-backed Semi-Tech Leasing funded AI infrastructure firm Glory View Technology to acquire over 700 servers, including 32 Asustek servers with restricted Nvidia B300 Blackwell processors. Chinese tech giants such as Alibaba and Tencent, along with startups like DeepSeek, have reportedly accessed diverted semiconductors to train models. Nvidia stated it abides by export control rules and is investigating the transactions with manufacturing partners.