Nvidia B300s: Smuggled Chips Found in Chinese Telecom Network

Israel-based security firm Lava has identified 32 Nvidia Blackwell Ultra B300 chips inside the network of China Telecom. This state-owned telecommunications provider operates within China. The discovery highlights the ongoing struggle to keep high-performance hardware out of the country. These specific chips are subject to strict U.S. export controls. They should not be available to Chinese data centers.

The numbers involved are specific. Lava detected exactly 32 units of the B300. These chips offer 50% more memory and FP4 compute power than the previous-generation B200. They were announced in March of last year. Nvidia described them as built for the age of reasoning. The B300 was expected to ship by the end of 2025. It quickly became a highly sought-after asset. The finding adds to a history of leaks. In 2025, reports indicated that Chinese companies smuggled $1 billion worth of Nvidia AI chips into the country in just three months.

Several entities are involved in this story. China Telecom is the primary host of the discovered hardware. Lava is the firm that found them. Nvidia is the chip manufacturer. The Information reported on the export ban status. A spokesperson for Nvidia responded to the news. They noted that governments and researchers have found insignificant diversion of controlled products. They cited recent court cases showing less than half of one percent diversion. They described this as a drop in the bucket compared to China's domestic compute.

The stakes involve the integrity of U.S. export controls. Banning companies from buying Nvidia's high-performance GPUs has not always worked. Distributors often gear up to sell new series like the B300 before they are widely available. In August 2026, nine people were indicted in Taiwan. They were charged with illegally exporting B300 GPUs to China. This happened days after Supermicro fired several employees. An investigation revealed a complex smuggling process. It involved a Taiwanese server trading firm called Flying Tiget Tech. This firm held whitelisted status for GPU purchases.

The method of detection is unusual. Lava used Nvidia's own DCGM Exporter tool to identify the chips. This software is typically installed by data center operators. It monitors server health and performance. It is designed for internal use. However, it can often be accessed beyond the data center's network. It does not always require password authentication. Nvidia confirmed it is working on a tool to locate its chips. This tool has not yet been released. It remains unknown exactly where within China Telecom's network the B300s are located.

The demand for these chips drives the smuggling. Nvidia's chips are vital to AI data centers. Demand for older silicon has caused prices to skyrocket. A100 servers have tripled in price. They are five years old. Some units cost up to $82,000. The crackdown on smuggling has led some to retool gaming GPUs. They use them to run AI workloads where possible. Nvidia insists that with tens of millions of GPUs in service in approved countries, smuggling remains a non-factor. They state that it is blocked by governments on both sides of the globe.