I'm John Batchel. Jack Burnham is here from the Foundation for the Defense of Democracies.

To help me with a story that involves the most glamorous and the most expensive and the most powerful corporation in the

S&P 500. NVIDIA, you got it. The highest end of all and it keeps on chugging. However,

there is a desire for

NVIDIA chips where they're forbidden. And Jack takes us to smugglers. This is the kind of

smuggling that we could have guessed what's going on, but there are details here. The Department

of Justice unsealed an indictment on March 19th. Containing what, Jack?

Who's smuggling and what can be done?

Good evening to you.

Thank you for having me.

The indictment that the Department of Justice unsealed was against two employees

and one contractor of American computing firm, a super microcomputer.

Now, this was a firm that sells large server racks,

so large collections of chips bound together,

sells them to various AI firms to allow them to build out their large data centers.

So super microcomputer isn't the one who's building the chips, but they're the ones who are

linking them together and putting them into servers and putting their servers into

data centers.

Now, the DOJ has alleged that these three defendants who are all connected to this firm, who

itself is not named in the indictment, really conducted a very large

and intensive smuggling operation over a number of years that smuggled allegedly $2.5 billion

worth of Nvidia chips to Chinese customers.

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