Thailand-based OBON Corp. has been accused of orchestrating a $2.5 billion smuggling network involving Nvidia AI servers allegedly shipped to Chinese buyers in violation of U.S. export controls. According to a March 2026 indictment from the U.S. Department of Justice, executives at Super Micro Computer were also charged with helping facilitate the operation.
Servers allegedly routed through Southeast Asia
The indictment claims the shipment network relied on transit routes across Southeast Asia to obscure the final destination of restricted AI hardware. Authorities said the pace of shipments accelerated in spring 2025, with more than $500 million worth of servers moved in just over a month. The allegations underscore the continuing demand for restricted high-performance computing equipment and the enforcement challenges surrounding export restrictions.
Alibaba denies involvement as market pressure grows
Alibaba, which was named as one of the alleged recipients, has denied any connection to the operation. The company said it has no business relationship with either Super Micro or OBON and stated that it has never used banned Nvidia chips. Following the indictment, Super Micro shares reportedly faced a significant selloff. The case has also further weakened confidence in the gray market for restricted chips, highlighting the legal and compliance risks tied to AI infrastructure supply chains.
Beyond the companies directly named, the case reflects broader tensions around advanced semiconductor trade, AI computing demand, and cross-border enforcement. For hardware makers, cloud service providers, and investors tracking the AI supply chain, further legal developments could carry wider implications for the movement of high-end compute systems.