The operation saw a branch of China's armed forces, known as the People's Liberation Army, forcing Chinese manufacturers to insert chips the size of a grain of rice into US-designed servers during the equipment manufacturing process, the report claims.
These chips could then reportedly be activated to compromise the networks of enterprise companies.
Tiny chips inserted in U.S. computer equipment manufactured in China were used as part of a vast effort by Beijing to steal USA technology secrets, according to Bloomberg. The news report says that it was inserted in motherboards when they were manufactured in Chinese factories.
The attack was reportedly discovered in 2015 by the USA intelligence services, as well as by Apple and Amazon as the companies purchased servers made by Super Micro Computer.
Apple and Amazon have distanced themselves from claims that they were among United States companies targeted by the Chinese hackers. Apple had reportedly bought around 7,000 Super Micro servers when its security teams discovered the chips.
Amazon and Apple have both strongly denied the results of the investigation.
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Apple, in turn, said that internal investigations have been conducted based on Bloomberg queries, and "we have found absolutely no evidence to support any of them".
"It's untrue that AWS knew about a supply chain compromise, an issue with malicious chips, or hardware modifications when acquiring Elemental", Amazon told Bloomberg in a statement.
Amazon subsidiary Amazon Web Services, which provides on-demand cloud computing platforms, was described in the Bloomberg story as having known about the malicious chips and working with the FBI to investigate the matter.
Apple said it had refuted "virtually every aspect" of the story in on-record responses to Bloomberg.
Both Apple and Amazon discovered the surveillance chips in 2015 and took steps to replace the affected servers, according to the report, which described close cooperation between US investigators and affected companies.
The company instead suggested that Bloomberg's sources may have been mistaking an incident in 2016 when an accidental vulnerability was found on a single Super Micro server inside the company.
However, Bloomberg claimed its reportage was based on interviews with 17 people, including six current and former senior national security officials, two people inside Amazon Web Services, and three Apple insiders. Amazon employs stringent security standards across our supply chain - investigating all hardware and software prior to going into production and performing regular security audits internally and with our supply chain partners.