Israeli cybersecurity firm Lava says it found 32 of Nvidia’s most powerful Blackwell Ultra B300 AI chips operating on systems linked to China Telecom, China’s state-owned telecommunications operator. Lava reportedly traced the hardware through unprotected monitoring systems.

The discovery points to a potential breach of U.S. export controls, which are intended to prevent China from obtaining advanced American semiconductor technology. Nvidia’s B300 chips are part of its latest and most powerful product line, and cannot be sold to China without a license because of national security concerns.