Banned Nvidia chips reportedly turn up in systems tied to China Telecom

An Israeli security company called Lava says it found 32 Nvidia Blackwell Ultra B300 chips linked to systems tied to China Telecom, a state-owned company. The US limits sales of Nvidia's top chips to China. So the find raises questions about whether those rules are being enforced. The report comes from Qianer Liu at The Information.

What was found

Lava said it saw the chips through monitoring systems connected to China Telecom. The B300 is one of Nvidia's most advanced AI chips. These are the chips that power large AI tools. The reported count is 32, which is small, but the location is what draws attention.

Why it matters

The US set controls on selling Nvidia's best chips to China. The goal is to limit access to the most powerful AI hardware. If chips slip through anyway, the rules may not work as intended. That can affect prices, supply and future rules for any business that relies on AI tools.

What is not known yet

• How the chips reached systems linked to China Telecom.
• Who sold or shipped them.
• Whether Nvidia or US officials will respond.
• Whether more chips are out there beyond these 32.

The material available does not say whether the chips were bought legally or what any company involved has said. Lava's finding is a claim from a security firm, and it has not been confirmed here by outside sources.