$568 million of GPUs allegedly misused for crypto mining caught in tax evasion and money laundering probe — EU claims 10,000 Nvidia H100 units acquired by Northern Data may not have been used for AI
European authorities are investigating Northern Data AG for potential tax fraud involving the purchase of $568 million in GPUs for AI computing, allegedly misused for crypto mining. The company received a significant tax break in Sweden for the purchase, but prosecutors suspect the GPUs were used for mining instead. The investigation includes allegations of tax evasion and money laundering, with four individuals detained and a senior employee questioned. Northern Data denies the accusations, stating its infrastructure is dedicated to cloud computing for AI companies. Misusing high-end GPUs like the Nvidia H100 for crypto mining is deemed financially inefficient due to their high cost and poor performance compared to specialized mining hardware.