Chinese Nationals Charged Over Illegally Exporting Nvidia AI Chips to China

Two Chinese nationals, Chuan Geng and Shiwei Yang, have been arrested and charged with illegally exporting millions of dollars’ worth of powerful AI chips from the US to China. The US Department of Justice alleged that ALX Solutions, a company run by Geng and Yang, exported Nvidia’s H100 graphics processing units without necessary licenses over the last three years.

The case highlights the efforts of US authorities to prevent China from acquiring cutting-edge technology. “Smuggling its chips is a nonstarter,” said an Nvidia spokesperson. The company ensures compliance with export control rules through partnerships with well-known sellers.

Court documents revealed that ALX Solutions had three employees, including Yang, who was an “illegal alien” and had overstayed her visa. Business records showed the company shipped goods to Singapore and Malaysia as transit hubs for China-bound shipments.

In one instance, ALX sent a shipment of export-restricted chips, which was checked by US customs but found to be without necessary licenses. The case could result in up to 20 years’ imprisonment for Geng and Yang if convicted.

Source: https://www.bbc.com/news/articles/c4gm921x424o