Two Charged for Smuggling of Nvidia AI Chips to China

Two Chinese nationals, Chuan Geng, 28, and Shiwei Yang, 28, have been arrested in California and charged with illegally exporting advanced Nvidia AI chips to China, according to U.S. authorities. 

The Department of Justice alleges that the pair ran a company, ALX Solutions, based in California, and shipped tens of millions of dollars’ worth of high-performance graphics processing units (GPUs), including Nvidia’s powerful H100 chips, to China without the required licenses from October 2022 to July 2025.

U.S. export restrictions demand that advanced technology, like these AI chips, cannot be sold or shipped to certain countries, including China, without government approval due to national security concerns. 

Prosecutors say Geng and Yang tried to get around this by sending shipments through transit hubs in Singapore and Malaysia and falsely declaring their destinations. Payment for the chips was reportedly received from companies in Hong Kong and mainland China, rather than from the intermediaries listed as receivers.

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If convicted for violating the Export Control Reform Act, both could face up to 20 years in prison. 

Nvidia responded by saying it only works with approved partners and strictly follows export regulations, emphasizing that attempts to smuggle its chips are “futile.” 

The case highlights ongoing tensions between the U.S. and China in the race for advanced technology, especially in the field of artificial intelligence.