🚨 Two Chinese Nationals Face Charges Over Illegal Nvidia AI Chip Exports to China
In a major move to protect sensitive technology, the United States Department of Justice (DOJ) has arrested two Chinese nationals accused of smuggling high-powered AI chips from Nvidia into China, violating strict export control laws.
According to US officials, Chuan Geng and Shiwei Yang, key figures behind California-based ALX Solutions, were involved in illegally exporting Nvidia’s cutting-edge H100 and RTX 4090 GPUs—chips now central to artificial intelligence development. These exports were allegedly carried out without required licenses, bypassing federal oversight.
🔍 Deception & Shell Companies
Court documents reveal that between 2022 and 2025, ALX Solutions used transit hubs in Singapore and Malaysia to mask the final destination of the chips—mainland China. Although shipments were documented as bound for legitimate businesses in Southeast Asia, investigators found fake addresses and non-existent companies. Payments reportedly came from Hong Kong and Chinese entities, including a $1 million transfer in early 2024.
Nvidia has since commented that any attempt to smuggle or divert their chips is futile, as such products lose access to support, updates, and services once flagged.
📦 A $28 Million Invoice Under Scrutiny
One of the shipments, valued at over $28.4 million, was flagged when customs intercepted it last December. The chips, including export-restricted Nvidia models, were falsely labeled as intended for Singaporean clients.
🛑 No Export License, No Excuses
The DOJ confirmed that neither Geng nor Yang ever applied for or received an export license. Yang was found to have overstayed her visa, while Geng is a permanent resident. Both now face federal charges with potential sentences of up to 20 years if convicted.
While ALX Solutions doesn’t have an official website, a cloud services firm called ALX-Cloud, believed to be a subsidiary, remains online. The BBC has reached out to them for comment.
📉 The case marks a strong warning to firms globally: US tech exports, especially AI-related, are under intense scrutiny as Washington seeks to limit China's access to military-grade computing.
🗣️ What do you think?
Should countries like the US do more to stop critical tech from falling into the hands of geopolitical rivals — or is global innovation being slowed by these restrictions?