Over $12 million worth of AI chips seized by Malaysian authorities after suspected smuggling syndicate tries to sneak servers through customs under false pretenses
AI continues to be big business, and the impetus behind big crime.
Malaysian customs authorities recently uncovered a smuggling operation involving $12.11 million worth of AI chips. Thirty server units, each equipped with advanced AI chips, were seized at Kuala Lumpur International Airport on October 15. These servers were intended for export to two undisclosed Asian countries, contrary to legal requirements which would have necessitated a trade permit.
The airport's customs director, Aspalila Ag Tuah, revealed that the servers were incorrectly labeled as electronic components to avoid any restrictions during their transport to their final destination. It appears that the shipment was facilitated by a Malaysian firm, though local authorities suspect this is part of a larger, ongoing scheme.
This incident is believed to be linked to at least five other similar cases, amounting to nearly $25 million in stolen chips. Notably, a previous smuggling attempt in June saw $13 million worth of chips seized, also incorrectly declared as computer components. According to Aspalila, all of these smuggling attempts are attributed to the same syndicate, though further details remain undisclosed as the investigation continues.
The US has imposed restrictions on exporting AI chips to various global destinations, prompting Malaysia to intensify its monitoring of shipments involving Nvidia chips. This strategy aims to prevent AI chips from potentially reaching China. Simultaneously, law enforcement agencies in Singapore and Taiwan have also taken action against chip smuggling, with arrests made in both instances.
The US government remains concerned about the possibility of China possessing advanced chipmaking capabilities despite export limitations, although ASML, a leading chipmaker, denies these allegations. With major tech companies heavily investing in AI technology, the demand for AI chips remains high, potentially fueling criminal activities in this sector.
Written by urgent.news from PC Gamer's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
