A recent investigation has revealed that restricted Nvidia H800, H100, and H200 artificial intelligence chips, subject to stringent US export controls, have been installed at a large AI data center in Shanghai. The findings, reported by Bloomberg News, highlight potential vulnerabilities in Washington's efforts to prevent advanced semiconductor technology from reaching China and raise concerns about the effectiveness of current international trade regulations.
Alleged Diversion Route Uncovered
According to the investigation, Aperia Cloud Services, an official Nvidia Cloud Partner based in Singapore, initially purchased 22 servers containing Nvidia's H800 chips from Dell Technologies. However, the hardware reportedly did not remain in Singapore. Instead, it allegedly ended up with Shanghai Longteng Intelligent Computing, a Chinese company founded by Alice Huang.
Documents submitted to Chinese authorities and information from sources familiar with the transaction were cited in the report. Serial numbers of the servers were reportedly verified against Dell's sale records to Aperia, confirming the initial purchase. The exact mechanism of the hardware transfer to Shanghai Longteng, or Alice Huang’s direct involvement in arranging it, remains unclear.
The Shanghai facility is also said to have connections to Megaspeed International, another Singapore-based data center company founded by Alice Huang in 2023. Megaspeed reportedly featured a rendering of the Shanghai facility in a 2024 investor presentation.
Dell's Response and Legal Actions
Dell Technologies has confirmed it terminated its relationship with Aperia due to concerns over unauthorized hardware diversion. The company stated it “stopped all sales and support to Aperia International in February 2025 due to unauthorized diversion concerns.”
This development coincided with the arrest of Aperia's CEO by Singapore authorities in February 2025 on charges of defrauding server suppliers. The executive has pleaded not guilty and is awaiting trial. Singaporean prosecutors have also charged a fifth individual in connection with the case. Nvidia previously stated that Aperia was no longer an active customer when its CEO was arrested and subsequently removed Aperia from its public list of Cloud Partners. Aperia has denied any wrongdoing.
Why Are These Chips Restricted?
The United States imposed restrictions on the export of advanced Nvidia processors to China as part of a broader strategy to limit Beijing's access to sophisticated computing technology. These measures, particularly targeting H800 chips in 2023, aim to slow China's development of advanced AI capabilities. The H100 and H200 processors are also subject to US export restrictions, with rules and licensing requirements evolving over time.
These high-performance processors are critical for training and operating advanced AI models, making access to them a strategic imperative in the technological competition between Washington and Beijing.
Broader Controversy and Implications
The investigation into the Nvidia AI chip diversion comes amidst a wider controversy involving Nvidia's former CEO, Jensen Huang, who resigned recently, acknowledging extramarital affairs, one reportedly involving Alice Huang. Alice Huang has also faced unconfirmed allegations of links to Chinese intelligence, which Beijing has denied. In May 2025, Jensen Huang stated there was “no evidence” of chip diversion.
Separately, Megaspeed announced an internal investigation into its compliance with export-control requirements concerning sensitive semiconductors. Malaysian authorities are also reportedly investigating a Megaspeed subsidiary over the possible diversion of advanced AI chips to other countries.
The reported movement of restricted chips through third-country intermediaries underscores the significant challenges regulators face in monitoring the ultimate destinations of sophisticated computing equipment. For US regulators, the core challenge remains ensuring that advanced AI chips sold through authorized partners are not subsequently diverted to destinations under export restrictions. The findings do not establish that Nvidia or Jensen Huang knowingly facilitated these transfers.