US prosecutors have identified OBON, a Bangkok-based firm, as the mysterious “Company-1” at the center of a $2.5 billion Nvidia GPU smuggling scheme – the largest since export controls on high-end AI chips took effect in 2022.

OBON allegedly worked with individuals tied to Supermicro to illegally ship servers containing Nvidia GPUs. Supermicro co-founder Liao Yixian has pleaded not guilty and is out on $5 million bail. A Supermicro sales manager and a contractor remain charged; one is still at large.

Between 2024 and 2025, OBON purchased ~2.5billion∗∗inserverequipment.InApril–May2025alone,∗∗2.5billion∗∗inserverequipment.InApril–May2025alone,∗∗510 million in products were illegally diverted. Methods included fake documentation, re-labeling, and even dummy server models to evade inspection.

Nvidia said it is upgrading global supply chain monitoring. Two US senators have called for suspending AI chip export licenses to Southeast Asian intermediaries. Supermicro shareholders have also filed a securities fraud lawsuit.

ICgoodFind : The $2.5B GPU smuggling case exposes deep compliance gaps, triggering tighter global controls and rising legal risks across the AI supply chain.