US probes Apex Logistics over alleged Nvidia AI chip smuggling

The US government is investigating Singapore-based Apex Logistics for allegedly smuggling Nvidia AI chips to China, according to people familiar with the matter. This investigation could mark the first action against a transportation company for participating in the illegal semiconductor trade. Authorities are examining whether Apex may have transported Super Micro Computer Inc.'s AI systems in violation of US export restrictions.

Nvidia chips are crucial for training and running AI models, and firms like Super Micro assemble them into servers installed in data centers. The US restricted sales of such hardware to China in 2022 due to concerns about their potential military applications. Despite the restrictions, firms in China have found ways to acquire the chips, leading to a sophisticated shadow trade.

Apex is aware of the US's concerns and is cooperating fully with the investigation, committing to compliance with all relevant regulations. The company's Swiss parent Kuehne+Nagel also confirmed cooperation with the probe. The investigation reveals how much of the supply chain may be involved in these illicit operations, with Nvidia chips often passing through multiple countries before reaching China.

The US government suspects Apex may have helped divert 100 servers or more to China, which could significantly bolster China's AI capabilities. Apex's web page states it can transport oversized cargo, including protection against shocks, and it serves various sectors, including retail, chemicals, and aerospace goods.