AI server smuggling cases expose gap between export compliance and due diligence

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AI server smuggling cases expose gap between export compliance and due diligence

A string of AI server smuggling prosecutions is showing that following US export-control rules to the letter has not stopped advanced Nvidia hardware from reaching China. The weak point lies less in the chips themselves than in the multi-layered server supply chain that carries them, where each participant checks its own slice, and no one owns the final destination.

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