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Thai Firm Linked to China Server Smuggling Scheme
8 May
Summary
- Thai firm OBON Corp suspected of smuggling $2.5 billion in servers.
- Servers contained advanced Nvidia chips destined for China.
- Alibaba listed as a potential end customer in the scheme.
A firm linked to Thailand's national AI initiative is under suspicion for allegedly helping to smuggle billions of dollars worth of Super Micro Computer servers loaded with advanced Nvidia chips into China. Identified as Bangkok-based OBON Corp, this intermediary buyer is central to a scheme reported by Bloomberg News. Prosecutors revealed that at least $2.5 billion worth of U.S. AI technology was moved through this operation.
Alibaba Group Holding was named as one of the end customers for some of these servers. However, an Alibaba spokesperson told Bloomberg that the company has no business relationship with Super Micro, OBON, or any third-party brokers involved. In March, the U.S. Justice Department charged Super Micro co-founder Yih-Shyan Liaw and others with orchestrating a plan to reroute U.S.-made servers via Taiwan for repackaging and smuggling into China.
The United States has imposed export bans on high-end Nvidia chips to China since 2022, citing military concerns. Separately, Super Micro shareholders filed a lawsuit in March accusing the company of securities fraud for allegedly hiding its reliance on sales to China that may have violated U.S. export laws.
