OBON Corp., a Thai company, is accused of orchestrating a $2.5 billion smuggling operation of Nvidia AI servers to Chinese buyers, including Alibaba, circumventing U.S. export controls. The U.S. Justice Department's March 2026 indictment charges Super Micro Computer executives with facilitating the scheme, which involved routing servers through Southeast Asia. The operation reportedly accelerated in spring 2025, with over $500 million in servers shipped in just over a month.
Alibaba, named as a recipient, denies involvement, stating no business ties to Super Micro or OBON and asserting it has never used banned Nvidia chips. The indictment has impacted Super Micro's stock, causing a significant selloff, and further weakened the gray market for restricted chips.
Thai Firm Allegedly Smuggled $2.5B in Nvidia AI Servers to China
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