Nvidia addresses AI chip smuggling, says bootleg datacenters are a 'losing proposition'

Core Viewpoint - Nvidia has stated that datacenters built with smuggled chips are a "losing proposition" and does not support unauthorized products, responding to reports of illegal entry of its AI chips into China [1][2]. Group 1: Company Position - Nvidia emphasizes that attempting to create datacenters using smuggled products is both technically and economically unviable [2]. - The company provides service and support exclusively for authorized NVIDIA products, indicating a clear stance against unauthorized usage [2]. Group 2: Market Context - Reports indicate that at least $1 billion worth of Nvidia's AI chips have illegally entered China, particularly during the period when restrictions were imposed on shipments of its H20 chips [2]. - Nvidia's B200 chips, which are prohibited from being sold to China, have gained popularity on the black market despite the existing restrictions [3].