Singapore Detains Three Individuals in an Nvidia GPU Crackdown

Singaporean authorities have arrested three people on fraud charges related to the alleged illegal re-export of Nvidia GPUs to DeepSeek, a Chinese AI firm, potentially circumventing US trade restrictions, according to reports.

A coordinated operation involving police and customs officials resulted in raids in 22 locations, the arrest of nine suspects, and the seizure of electronic devices and documents.

Speculation about Singapore's involvement in GPU transfers

In 2024, Singapore unexpectedly became Nvidia's second-largest revenue hub, fueling speculation that the city-state was used as a transit point for smuggling GPUs into China. Nvidia denied these claims, stating that billing locations do not determine final destinations for GPUs and that Singapore accounted for less than 2% of its fiscal year 2025 shipments.

Concerns within the US Commerce Department grew after DeepSeek released its open-source AI model and chatbot, raising questions about whether the company had gained access to restricted chips. It was previously reported that restricted US semiconductors had found their way into the Chinese military, state AI research labs, and universities despite export controls.

According to a report, a smuggling network may be operating through Singapore-based intermediaries, allegedly channeling high-performance Nvidia GPUs—critical for AI and advanced computing—into China in violation of US export regulations.

While recent arrests have shed light on local involvement in the movement of restricted chips, authorities are still investigating the full scope of the operation.

DeepSeek, for example, trains its large-language models on thousands of Nvidia Hopper GPUs, including the H100, H20, and H800 models, whereas smaller research institutions may require far fewer units.

Singapore's policy on export compliance

Singaporean officials reiterated last week that, while the country is not subject to unilateral foreign export restrictions, companies operating within its borders must comply with them where applicable. Authorities also warned that Singapore's trading system should not be used to circumvent international regulations.  

These arrests come after a US announcement last month that said investigations were underway into potential collaborations between DeepSeek and Singapore-based entities to acquire Nvidia chips. Nvidia clarified that, while Singapore serves as a central hub for invoicing, its products are typically shipped elsewhere.