International AI Intrigue Unfolds in Singapore Fraud Case

A recent case of fraud in Singapore may be just the tip of the iceberg for a larger international AI scandal. According to Reuters, three individuals have been charged with fraud for allegedly misrepresenting the delivery of items to a server supplier. Local media reports suggest that these “items” may have been high-end Nvidia chips, which could have been diverted to the Chinese artificial intelligence company DeepSeek.

On the surface, the charges appear to be relatively vague, although serious in nature. Singaporeans Aaron Woon Guo Jie and Alan Wei Zhaolun, along with Chinese national Li Ming, have been charged by Singapore’s authorities for allegedly falsifying information about supplying unidentified items to a server company. These crimes carry a penalty of up to 20 years in jail and a potential fine. However, beneath the surface, a more complex conspiracy seems to be unfolding.

According to Reuters, Singapore’s law enforcement has arrested a total of nine people in a joint operation with customs, raiding 22 different locations and seizing documents and electronic records. Local media reports, which Reuters did not confirm, link the alleged fraudsters to DeepSeek.

A report from Channel News Asia suggests that the “items” in question were indeed Nvidia chips, and their intended destination was allegedly China’s AI firm, which made headlines earlier this year for releasing a model that achieved high-end performance despite significantly lower training costs. This would be a significant development, given that Nvidia chips are subject to sanctions and cannot be shipped to China.

If the scheme is proven to be what authorities suspect, it would not be entirely surprising, but rather a confirmation of long-held suspicions. Shortly after DeepSeek unveiled its open-source AI model and chatbot, the US Department of Commerce launched an investigation into whether the company was using restricted chips. Reuters reported last year that the Chinese military, state-run AI research organizations, and universities had purchased semiconductors that were supposed to be restricted for export by the US.

The news of the arrests in Singapore comes just one month after US officials announced that they were investigating whether DeepSeek was working with third parties in Singapore to obtain Nvidia chips. If the reports are accurate, it appears that they may have found their answer.