US government arrests two Chinese nationals for allegedly shipping Nvidia's ‘most powerful' AI chip
Two Chinese nationals have been arrested for allegedly exporting sensitive AI-related microchips to China without authorization. According to the
US Department of Justice
, Chuan Geng, 28, of Pasadena, and Shiwei Yang, 28, of El Monte, are accused of violating the Export Control Reform Act, a charge that carries up to 20 years in prison. Yang, who is illegally living in the US after overstaying her visa, was arrested last week. While Geng, a lawful permanent resident, surrendered to federal authorities. He was later released on a $250,000 bond, while Yang's detention hearing is scheduled for August 12.
According to the complaint, the chip – made by a manufacturer of high-performance AI chips – is the 'most powerful GPU chip on the market,' and is 'designed specifically for AI applications,' such as 'to develop self-driving cars, medical diagnosis systems, and other AI-powered applications.' While the DOJ press release does not name the AI chip being illegally shipped, a CNBC report says that it is Nvidia's H100. The publication claims to have accessed a criminal complaint that names H100.
How two Chinese nationals shipped Nvidia chips illegally
According to federal investigators, the accused operated a company named ALX Solutions Inc., based in El Monte, California. From October 2022 to July 2025, Geng and Yang allegedly used this company to export graphic processing units (GPUs)—advanced computer chips essential for AI development—to China without obtaining required licenses from the U.S. Department of Commerce.
As per the DOJ release, the duo founded ALX Solutions shortly after new export restrictions were imposed on AI-related microchips, indicating an intention to bypass these controls from the outset.
Investigators found that ALX Solutions declared shipments as being sent to companies in Singapore and Malaysia, common transit points used to disguise final destinations. Export records showed that a shipment in December 2024, along with at least 20 previous shipments, were routed through these countries to avoid detection.
Despite claiming to export to Singapore and Malaysia, ALX Solutions received payments directly from entities in Hong Kong and China, including a $1 million transfer in January 2024. This mismatch raised suspicions of illegal exports disguised as legitimate business transactions.
The investigation is being conducted by the FBI and the US Department of Commerce's Bureau of Industry and Security. The case is being prosecuted by the US Attorney's Office for the Central District of California and the National Security Division's Counterintelligence and Export Control Section.
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