Restricted Nvidia AI hardware has been tracked to a Shanghai data center through unauthorized supply chain diversion.
The case details how servers from major vendors moved through partners to China, triggering supplier fraud arrests and compliance reviews.
According to data obtained by Bloomberg, 22 servers containing H800 chips — which are banned from sale in China starting in 2023 — were originally sold by Dell Technologies to Aperia Cloud Services, an official Nvidia cloud services partner based in Singapore. However, instead of staying in Singapore, the servers ended up at a Chinese artificial intelligence unit.
Dell cut off sales and technical support to Aperia in February 2025, following concerns about unauthorized diversion of equipment. That same month, Singaporean authorities arrested Aperia's CEO on charges of supplier fraud, to which he pleaded not guilty.
In addition to the Dell servers, the equipment included 52 Super Micro Computer units with H100 or H200 chips, which are also subject to strict export restrictions. Super Micro said its sales were made in accordance with applicable export control laws and clarified that it has no connection to the data center in Shanghai, known as the Yangtze River Delta Project.
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Documents linking the equipment to China were filed with regulators by a subsidiary of Shanghai Longteng Intelligent Computing, a company previously founded by Alice Huang. The servers, worth a total of 485 million yuan, were used as collateral to secure financing in January 2025. At the time, control of the company was in the hands of Alice Huang’s sister, who was the majority shareholder.
The Shanghai data center has multiple connections to Alice Huang's business environment. Among other things, its chairman is a longtime associate of hers, while another company she founded, Megaspeed, used a depiction of the facility in a presentation to investors.
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