Reported by 2 outlets
The story so far
AI summary of the reporting below · Updated · How we work
Israeli security firm Lava identified 32 restricted Nvidia Blackwell Ultra B300 artificial intelligence chips running inside the network of China Telecom, a state-owned telecommunications provider. United States export controls bar the sale of the high-performance graphics processing units to Chinese entities, permitting distribution solely to whitelisted buyers who pledge not to transfer them to sanctioned markets. It remains unclear how the hardware entered the country or where the units are physically housed within the network. [1][2]
Lava detected the hardware remotely using Nvidia's DCGM Exporter monitoring software, an internal health tool that operators can leave open to outside access without password protection. Nvidia did not challenge the findings but downplayed the incident, describing illicit diversions as less than half of one percent in recent legal cases and calling such smuggling a drop in the bucket compared to approved deployments worldwide. [1][2]
The discovery illustrates ongoing challenges in enforcing export restrictions on advanced computing hardware. Demand for top-tier artificial intelligence processors remains intense, with authorities in Taiwan indicting nine individuals in August 2026 over illicit B300 exports to China, following earlier disclosures that Chinese firms brought in $1 billion worth of smuggled Nvidia silicon over a single three-month span in 2025. [2]
A security firm has been able to identify 32 Nvidia Blackwell Ultra B300 AI chips running inside a China Telecom network, but it's unclear where the export-barred components are physically located.
via Tom’s Hardware
NVIDIA’s flagship Blackwell Ultra B300 has continued to find a place in Chinese infrastructure after an investigation by security firm Lava revealed that 32 of these high-performance units were operating inside the network of China Telecom, a state-owned telecommunications giant. The report concludes that, despite the U.S. export controls in place, these GPUs are still finding a way onto Chinese soil, albeit through illegal means.
via Wccftech