NVIDIA CEO, Jensen Huang, holds a GPU (L) Blackwell GeForce RTX 50 and an RTX 5000 laptop when it pronounces an opening address to the Consumer Electronics Show (CES) in Las Vegas, Nevada on January 6, 2025.
Patrick T. Fallon | AFP | Getty images
The alarm ringtones were released in 2024 when Singapore became unexpectedly as Nvidia Second larger source of income. Disclosure has fueled widespread speculation that Nvidia artificial intelligence fleas were channeled towards China.
These concerns intensified in January after Deep from China Fleece on the international scene of AI due to sophistication and reported the profitability of its model. Deepseek AI is formed on NVIDIA graphic processing units despite export restrictions designed to maintain technology outside China.
Singapore has worked to dismantle a network of ghosts of ghosts of Nvidia cutting -edge ia chips, and at the end of last week, the authorities held three people there to deliberately distort the final destination of American manufactured servers, probably containing highly sought -after chips of Nvidia.
The internal affairs of Singapore and the Minister of Law K Shanmugam revealed Monday that the servers of Apron And Super micro computer Was shipped to Malaysia, raising the critical question: was Malaysia really the final destination?
Nvidia refused to comment on one of these developments.
Nvidia’s shares fell by almost 8% on Monday and are now down 14% in 2025, a slide that pushed the market capitalization of the company below 3 billions of dollars. Super micro-actions dropped 11% on Monday and Dell shares dropped by around 6%.
While Singapore firmly rejected the allegations to serve as a conduit in China, Nvidia stressed a crucial distinction in what it means to be a client in his Annual report Posed last week.
Singapore represented 18% of the Total turnover of NVIDIA, around 24 billion dollars, during the financial year ended on January 28, on the basis of “customer billing location”, but less than 2% of income, around $ 473 million, in terms of products sent to the country.
“Customers use Singapore to centralize billing while our products are almost always shipped elsewhere,” said Nvidia in its annual report.
The arrests in Singapore show that a sophisticated network of resellers continues to operate despite an in -depth examination.
Mizuho analysts warn that any complete ban on exports from Nvidia flea market to China could eliminate $ 4 billion from $ 5 billion compared to the expected NVIDIA income for this exercise. The company said that on its results of the fourth quarter profits that sales of the data center in China as a percentage of total income center income “remained much lower than the levels observed at the start of export controls”.
While digital borders harden between east and west, silicon smugglers can find new routes. But the race for domination of the AI ​​guarantees that this high challenges game will continue, with implications far beyond the income of companies.
