A probe into DeepSeek GPU smuggling has revealed that Nvidia’s Singapore sales account for nearly 28% of its revenue, but only about 1% of those sales are actually delivered to the country. This discrepancy has raised concerns that Singapore may be used as a transshipment point for banned AI chips bound for China.
According to Bloomberg, Washington is investigating whether the firm behind DeepSeek used Nvidia’s GPUs smuggled via Singapore. The Singapore government has confirmed that only a small fraction of Nvidia’s sales in the country are actually shipped domestically.
In a statement, Second Minister for Trade and Industry Tan See Land said: “The physical delivery of products sold by Nvidia to Singapore represents less than 1% of Nvidia’s overall revenue.” This is despite reports suggesting Singapore accounts for nearly 28% of Nvidia’s revenue for 2024.
Tan explained that it is common practice for global entities to centralize billing in their hubs, which can be separate from where the products are shipped. However, this business strategy does not necessarily imply any wrongdoing or smuggling.
Nvidia itself has stated that its revenue by geographic area is based on the billing location of the customer, not the end customer or shipping location. The company’s chips are primarily designed in Santa Clara, California, and Singapore is closely tied to China in terms of trade and business.
The Singapore government is working closely with US authorities to investigate this discrepancy, as it seeks to balance its relationships with both countries. The probe has sparked concerns about the potential for sanctions or penalties against Nvidia, but experts have noted that simply having a different billing and shipping address may not necessarily be evidence of smuggling.
Source: https://www.tomshardware.com/tech-industry/deepseek-gpu-smuggling-probe-shows-nvidias-singapore-gpu-sales-are-28-percent-of-its-revenue-but-only-1-percent-are-delivered-to-the-country-report