Senator Elizabeth Warren, the top Democrat on the Senate Banking Committee, has formally questioned whether Nvidia's advanced artificial intelligence chips are continuing to reach China despite US export restrictions — citing a string of criminal cases allegedly involving the diversion of hundreds of millions of dollars worth of restricted technology. The letter, sent on Monday, 2 June, was addressed to Nvidia Executive Vice President and General Counsel Tim Teter and Audit Committee Chair Brooke Seawell.

What Warren's Letter Alleges

The Massachusetts Democrat pointed to multiple enforcement actions brought by the US Department of Justice, which allege schemes involving the unlawful diversion of Nvidia products. According to her letter, these include millions of dollars in graphics processing units routed to China through Malaysia and Thailand, exports and attempted exports of $160 million in H100 and H200 chips, and $510 million in diverted servers.

Warren argued that these allegations directly contradict public statements made by Nvidia Chief Executive Officer Jensen Huang, who has maintained there was 'no evidence of any AI chip diversion' and that Nvidia's market share in China had 'dropped to zero.'

The Supermicro Connection

Among the cases cited was a March 2026 indictment involving three individuals linked to Super Micro Computer — commonly known as Supermicro. Prosecutors alleged they conspired to export more than $510 million worth of servers loaded with restricted Nvidia products to China. Warren noted that Nvidia continues to list Supermicro in its partner network, and that the server maker recently stated it is continuing to expand its partnership with Nvidia.

Southeast Asia Diversion Routes

The letter also referenced reports suggesting that several Nvidia cloud partners in Southeast Asia may have been linked to the diversion of export-controlled AI chips. Warren pointed specifically to reports alleging that Nvidia chips were routed to Chinese technology giant Alibaba through a Thailand-based company — a pattern that critics argue exploits gaps in third-country enforcement.

This comes amid broader bipartisan concern in Washington over the effectiveness of US export controls on advanced semiconductors. Warren wrote: 'Congress has made bipartisan efforts to strengthen export controls on restricted entities, but these efforts are undermined when corporations ignore the diversion of prohibited exports.'

Key Questions Posed to Nvidia

Warren asked Nvidia's Audit Committee whether it considers the alleged diversion a material legal or regulatory risk, whether it has reviewed export-control compliance following recent indictments, whether independent assessments have been conducted, and what evidence supports executives' public claims of 'no evidence' of diversion. Nvidia has been asked to respond by 18 June.

Federal regulations prohibit unlicensed exports of advanced AI chips to embargoed countries, including China, and require companies to exercise heightened diligence when products face a risk of diversion or misuse. Government guidance warns exporters to investigate 'red flags' that could indicate an inappropriate end user, destination, or use — a standard Warren argues Nvidia may not have met. Whether the company's board responds substantively before the deadline could determine whether the matter escalates to formal congressional scrutiny.