Taiwanese prosecutors have charged eight people with smuggling advanced Nvidia-powered AI servers into China, a sign that export controls are being enforced but also that they are being beaten.

• Prosecutors in Keelung say 74 high-end AI servers built with Nvidia's top B300 chips were resold into China.
• The profit from the scheme topped $21 million, most of it going to the trading firm behind the deal.
• A senior manager at Nvidia's Taiwan arm allegedly falsified an on-site inspection report so the sale would clear approval.
• The buyer's supposed data center could not even supply enough power for the 130 servers ordered, a red flag that was hidden.
• A Japanese shell company was used as a middleman to get onto the approved-buyer whitelist; 56 more servers were seized before shipping.

Outlook: Expect tighter checks on Asian resellers and more pressure on Nvidia's partner network as Washington and Taipei chase chip-smuggling routes.