Trump Oks Nvidia H200 Exports to China as $160 Million Smuggling Ring Unsealed
Federal prosecutors unsealed a $160M Nvidia chip smuggling case as President Trump announced a 25% cut policy to allow Nvidia H200 China exports.
It's a tale of two Washingtons. On the same day federal prosecutors unsealed a massive $160 million investigation into an illegal Nvidia chip smuggling ring, President Donald Trump announced a pivot that could change the game. The U.S. will now allow Nvidia H200 GPUs to be exported to China—provided the government gets its cut.
Operation Gatekeeper: Uncovering the $160M Smuggling Network
According to CNBC, 'Operation Gatekeeper' revealed a sophisticated underground supply chain designed to bypass export controls between October 2024 and May 2025. The syndicate used front companies like 'Sandkayan' and mislabeled high-end H100 and H200 chips as simple 'adapters' or 'controllers.' An undercover agent eventually penetrated a secret warehouse in New Jersey, witnessing suspects frantically deleting chat logs as federal agents moved in.
The 25% Fee: Trump’s New Nvidia H200 China Export Policy
President Trump's social media announcement has scrambled the legal landscape. He stated that the U.S. would permit the export of the H200—the very chip at the heart of the smuggling case—if the U.S. receives a 25% cut of the sales. While the more advanced Blackwell and Rubin architectures remain banned, defense attorneys for the alleged smugglers are already using the President's words to argue that these exports no longer pose a threat to national security.
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