US law enforcement authorities are investigating suspicions that artificial intelligence (AI) equipment from server maker Super Micro Computer (SMCI) was being secretly shipped to China. The targets include groups linked to Alice Huang, a Chinese businesswoman entangled with Nvidia's former chief executive, Jensen Huang. The fallout from the Jensen Huang scandal appears to be spreading across the AI industry.
As of the 12th (local time), the US Department of Justice and the US Attorney's Office for the Southern District of New York were reportedly looking into whether a group linked to Alice Huang attempted to bring Super Micro AI products into China. Authorities are tracing a route that passed through Southeast Asian intermediaries, including Obon, which is headquartered in Bangkok, Thailand.
Alice Huang is said to have had an affair with former CEO Jensen Huang through Megaspeed, the largest buyer of Nvidia chips in Southeast Asia. US intelligence authorities have kept her under surveillance in connection with espionage allegations. She is known to be currently staying in Beijing, China.
However, it is unclear whether the case is connected to the previously reported chip smuggling. A source also said the extent of Alice Huang's involvement is unclear. The investigation could also end without any indictment.
In March, US prosecutors indicted three former executives and employees, including Super Micro co-founder Liaw Lee, on charges of diverting servers worth $2.5 billion containing Nvidia chips to China. If it is confirmed that Alice Huang was also involved in the leakage of other companies' equipment, the repercussions could grow, as the US government is stepping up enforcement against the rerouting of AI servers to China.
Super Micro has not been named a defendant in this investigation. The company says an independent investigation in August found no evidence of involvement by current management, and that it is cooperating actively with authorities.
The news of the investigation came on the same day Jensen Huang said he would step down as Nvidia's president, CEO and board member. Super Micro shares fell more than 10% intraday, and Nvidia shares dropped around 5%.