US officials and lawmakers are examining how Nvidia’s oversight systems failed to detect restricted AI chips reaching China, after a Bloomberg investigation published on October 1, 2026, highlighted warning signs including surveillance imagery showing server labels being removed. On the same day, US authorities arrested California resident Greg Lui on charges of conspiracy, smuggling and money laundering. Prosecutors allege he moved more than $300 million in servers containing Nvidia AI chips to China between 2023 and 2024. The Department of Justice had indicted three people linked to Super Micro Computer in March 2026 over an alleged scheme involving approximately $510 million in Nvidia-equipped servers. Together, the cases involve more than $800 million in allegedly diverted hardware. A September 2026 C4ADS report identified smuggling routes through Southeast Asia, including Malaysia and Vietnam. Senators Jim Banks and Elizabeth Warren had already asked Commerce Secretary Howard Lutnick to review Nvidia’s export licenses, citing inadequate company monitoring. Nvidia CEO Jensen Huang has rejected the allegations, but criticism continues. The scrutiny centers on US export controls first imposed in 2022 on high-performance GPUs, including Nvidia’s H100 and H200, with sales requiring licenses or being prohibited depending on the product and buyer. A formal license review could restrict Nvidia’s sales of advanced products, while Malaysia and Vietnam could face increased attention if they remain key transit points.