Feds charge 3 in $2.5b scheme to smuggle us AI tech to China using dummy servers

Feds charge 3 in $2.5b scheme to smuggle us AI tech to China using dummy servers

Three men linked to Supermicro are accused of diverting billions in AI servers to China using dummy servers, fake labels, and shell companies.

Federal prosecutors charged three individuals linked to Super Micro Computer Inc. in an alleged multibillion-dollar scheme to smuggle U.S. artificial intelligence technology to China. (David Paul Morris/Bloomberg via Getty Images)

Federal prosecutors said individuals linked to Super Micro Computer Inc. used tactics including dummy servers and a hair dryer to alter labels in an alleged scheme to smuggle U.S. AI technology to China. (Department of Justice)

On March 19, 2026, federal prosecutors alleged a multibillion-dollar scheme to divert sensitive U.S. artificial intelligence technology to China in violation of export laws. (Department of Justice)

The Justice Department charged three individuals in connection with an alleged scheme to illegally export U.S. AI technology to China, officials said on March 19. (BRENDAN SMIALOWSKI/AFP via Getty Images)