Federal authorities are investigating allegations that a company connected to Thailand’s artificial intelligence program facilitated the illegal transfer of billions of dollars in advanced computer technology to China, according to a Bloomberg News report published Friday.
Sources familiar with the investigation told Bloomberg that Bangkok-based OBON Corp is believed to be the Southeast Asian intermediary that prosecutors have labeled “Company-1” in court documents related to the smuggling operation.
Chinese e-commerce giant Alibaba Group was reportedly among the final recipients of the illegally exported technology, according to the report.
When contacted by Bloomberg, an Alibaba representative denied any connection to the alleged scheme, stating: “The company has no business relationship with Super Micro, OBON or any third-party brokers mentioned in the indictment.”
The Justice Department filed criminal charges in March against three individuals connected to Super Micro Computer: company co-founder Yih-Shyan Liaw, sales manager Ruei-Tsang Chang, and contractor Ting-Wei Sun. Federal prosecutors accuse them of orchestrating a complex operation to send American-manufactured servers through Taiwan to Southeast Asia, where the equipment was repackaged in unmarked containers before being shipped to China.
According to the indictment, the defendants facilitated the transfer of at least $2.5 billion worth of American artificial intelligence technology, with more than $500 million in shipments occurring between April and mid-May of this year alone.
The Bloomberg report indicates that some of the $2.5 billion in servers sold to OBON ultimately reached Alibaba.
Washington implemented restrictions on exporting advanced Nvidia semiconductors to China in 2022, citing national security concerns about potential military applications. However, the administration did authorize limited sales of Nvidia’s H200 chips to China under specific conditions beginning in January.
In a related development, Super Micro Computer faces a separate lawsuit filed by shareholders in March. The investors accuse the Silicon Valley-based company of securities fraud, claiming executives deliberately hid the company’s dependence on Chinese sales that allegedly violated federal export regulations.
Representatives from Nvidia, Super Micro Computer, Alibaba Group, and OBON Corp were not immediately available to provide statements regarding the investigation.
