32 Restricted Nvidia B300 GPUs Detected in China Telecom's Infrastructure
Security researchers discovered export-banned Nvidia AI chips operating within a state-owned Chinese telecommunications network.
By Kavya Kapoor ·
Israeli security firm Lava identified 32 Nvidia Blackwell Ultra B300 units inside the network of China Telecom, a state-owned telecommunications provider, according to a report by The Information.
The discovery highlights the ongoing challenge of controlling advanced AI hardware exports to China. These specific B300 chips are subject to U.S. export controls and are restricted from sale to Chinese entities, as well as other sanctioned parties. Nvidia requires buyers of high-performance GPUs and AI data center chips to agree not to export them to these restricted regions.
Despite these restrictions, preventing such hardware from reaching Chinese markets has proven difficult. In 2025, reports indicated that approximately $1 billion worth of Nvidia AI chips were smuggled into China over a three-month period. While B200 chips were the primary target at that time, distributors were already preparing to sell B300-series processors as they became available.
Nvidia has not denied the findings regarding the China Telecom network but has characterized the volume of unauthorized diversion as negligible. A spokesperson for Nvidia stated, "Governments, researchers, and media have all found insignificant diversion of controlled US products, less than one half of one percent in recent court cases, a drop in the bucket compared to the ocean of domestic compute China already has." The spokesperson added, "With tens of millions of GPUs in service in approved countries, this report again demonstrates that smuggling is a nonfactor, blocked by governments on both sides of the globe."
Lava was able to identify the chips using Nvidia's own DCGM Exporter tool. This software is designed to monitor server health and performance and is typically used internally by data center operators. However, access to the tool can sometimes extend beyond the data center's network, and it frequently does not require password authentication. Lava has not confirmed exactly where within the China Telecom network these chips are located, nor is it known how they arrived there.
The Nvidia Blackwell Ultra B300 is among the most powerful data center GPUs available. Announced in March 2025, the chip offers substantial performance gains, including 50% more memory and FP4 compute capabilities compared to the previous generation B200. Nvidia stated the chip was "built for the age of reasoning," designed to support advanced AI large language models. Shipping for the B300 began in late 2025, and it has since become a highly sought-after item on the secondary market.
Enforcement efforts regarding these chips have escalated in recent months. In August 2026, nine individuals were indicted in Taiwan over the illegal export of B300 GPUs to China. This action followed Supermicro's confirmation that it had terminated several employees after an investigation into smuggling activities. That investigation revealed a complex process involving a Taiwanese server trading firm, Flying Tiget Tech, which holds whitelisted status for purchasing GPUs.
The high demand for Nvidia hardware has driven prices for older equipment to record levels. A100 servers, despite being five years old, have tripled in price and can cost as much as $82,000. The crackdown on unauthorized exports has also led some entities to retool gaming GPUs to handle AI workloads.
Source: Tom's Hardware
