Latest news with #ALXSolutions
Tahawul Tech
2 days ago
- Business
- Tahawul Tech
The U.S. makes arrests over chip shipment breach
Two Chinese nationals have been arrested by US authorities over claims they illegally shipped millions of dollars-worth of top-end chips to China, a case that could be the latest involving Nvidia products. The US Department of Justice (DoJ) alleges Chuan Geng and Shiwei Yang breached the Export Control Reform act by shipping GPUs and other silicon used to power AI applications to China without proper licences or authorisation from the Department of Commerce. Of particular interest are shipments the pair made from their California-based company ALX Solutions to businesses in Singapore and Malaysia 'which commonly are used as transshipment points to conceal illegal shipments to China', the DoJ stated. The US authority flagged shipments made in December 2024 'and at least 20 previous' consignments involving the freight-forwarding businesses, highlighting ALX Solutions received payment from companies in Hong Kong and China. A federal criminal complaint used as the basis for the duo's arrest and public information indicates the chip involved is the 'most powerful GPU' on the market, with the DoJ stating it is 'made by a manufacturer of high-performance AI chips'. News outlets including Reuters and CNBC report the chip is Nvidia's H100, silicon the company promotes on its AI capabilities. The DoJ emphasised the presumed innocence of all defendants. Hearings and court dates are scheduled for the coming weeks. Last month, Financial Times reported a stash of Nvidia B200 chips were smuggled into China earlier this year. The company is also facing scrutiny over the security of its H20 silicon. Source: Mobile World Live Image Credit: Stock Image
CNN
3 days ago
- Business
- CNN
Two Chinese nationals in California accused of illegally shipping Nvidia AI chips to China
Two Chinese nationals in California were arrested and charged with illegally shipping tens of millions of dollars' worth of AI chips to China, including Nvidia (NVDA) H100s, the US Justice Department said on Tuesday. Chuan Geng, 28, of Pasadena, and Shiwei Yang, 28, of El Monte, exported the advanced Nvidia chips and other technology to China from October 2022 through July 2025 without the required licenses from the US Commerce Department, the Justice Department said, citing an affidavit filed with the complaint. According to the affidavit, Geng and Yang's El Monte-based company, ALX Solutions, was founded in 2022, shortly after the US imposed sweeping export controls on technology to China to slow Beijing's military modernization and began to require licenses for the chips. China opposed the US move as harming normal trade. Over 20 shipments from ALX went to shipping and freight forwarding companies in Singapore and Malaysia, which are often used as transshipment points for illegal goods to China, a federal agent, who works for the Commerce Department, said in the affidavit. ALX received a $1 million payment from a China-based company in January 2024 and other payments from companies in Hong Kong and China, not from the freight forwarding companies, the agent said. Nvidia H100s are advanced chips that can be used to train large language models and many other applications. Records show that from at least August 2023 to July 2024, ALX Solutions bought over 200 Nvidia H100 chips from San Jose, California-based server maker Super Micro Computer, declaring that the customers were in Singapore and Japan, the agent said. On one 2023 invoice valued at $28,453,855, ALX said the customer was in Singapore, but a US export control officer in Singapore could not verify the chips arrived in the country and the company did not exist at the listed location, the document says. 'This case demonstrates that smuggling is a nonstarter,' a Nvidia spokesperson said in a statement. 'We primarily sell our products to well-known partners…who help us ensure that all sales comply with U.S. export control rules.' Diverted products have 'no service, support or updates,' the statement added. Super Micro said in a statement it was 'firmly committed to compliance with all U.S. export control regulations.' It said it did not comment on ongoing legal matters, but cooperated with authorities in any such proceedings. Geng and Yang appeared in federal court in Los Angeles on Monday, the Justice Department said. Geng, a permanent resident, was released on $250,000 bond. Yang, who overstayed her visa, has a detention hearing on August 12. Lawyers for the defendants did not respond to requests for comment.
CNN
3 days ago
- Business
- CNN
Two Chinese nationals in California accused of illegally shipping Nvidia AI chips to China
Two Chinese nationals in California were arrested and charged with illegally shipping tens of millions of dollars' worth of AI chips to China, including Nvidia (NVDA) H100s, the US Justice Department said on Tuesday. Chuan Geng, 28, of Pasadena, and Shiwei Yang, 28, of El Monte, exported the advanced Nvidia chips and other technology to China from October 2022 through July 2025 without the required licenses from the US Commerce Department, the Justice Department said, citing an affidavit filed with the complaint. According to the affidavit, Geng and Yang's El Monte-based company, ALX Solutions, was founded in 2022, shortly after the US imposed sweeping export controls on technology to China to slow Beijing's military modernization and began to require licenses for the chips. China opposed the US move as harming normal trade. Over 20 shipments from ALX went to shipping and freight forwarding companies in Singapore and Malaysia, which are often used as transshipment points for illegal goods to China, a federal agent, who works for the Commerce Department, said in the affidavit. ALX received a $1 million payment from a China-based company in January 2024 and other payments from companies in Hong Kong and China, not from the freight forwarding companies, the agent said. Nvidia H100s are advanced chips that can be used to train large language models and many other applications. Records show that from at least August 2023 to July 2024, ALX Solutions bought over 200 Nvidia H100 chips from San Jose, California-based server maker Super Micro Computer, declaring that the customers were in Singapore and Japan, the agent said. On one 2023 invoice valued at $28,453,855, ALX said the customer was in Singapore, but a US export control officer in Singapore could not verify the chips arrived in the country and the company did not exist at the listed location, the document says. 'This case demonstrates that smuggling is a nonstarter,' a Nvidia spokesperson said in a statement. 'We primarily sell our products to well-known partners…who help us ensure that all sales comply with U.S. export control rules.' Diverted products have 'no service, support or updates,' the statement added. Super Micro said in a statement it was 'firmly committed to compliance with all U.S. export control regulations.' It said it did not comment on ongoing legal matters, but cooperated with authorities in any such proceedings. Geng and Yang appeared in federal court in Los Angeles on Monday, the Justice Department said. Geng, a permanent resident, was released on $250,000 bond. Yang, who overstayed her visa, has a detention hearing on August 12. Lawyers for the defendants did not respond to requests for comment.
CNN
3 days ago
- Business
- CNN
Two Chinese nationals in California accused of illegally shipping Nvidia AI chips to China
Two Chinese nationals in California were arrested and charged with illegally shipping tens of millions of dollars' worth of AI chips to China, including Nvidia (NVDA) H100s, the US Justice Department said on Tuesday. Chuan Geng, 28, of Pasadena, and Shiwei Yang, 28, of El Monte, exported the advanced Nvidia chips and other technology to China from October 2022 through July 2025 without the required licenses from the US Commerce Department, the Justice Department said, citing an affidavit filed with the complaint. According to the affidavit, Geng and Yang's El Monte-based company, ALX Solutions, was founded in 2022, shortly after the US imposed sweeping export controls on technology to China to slow Beijing's military modernization and began to require licenses for the chips. China opposed the US move as harming normal trade. Over 20 shipments from ALX went to shipping and freight forwarding companies in Singapore and Malaysia, which are often used as transshipment points for illegal goods to China, a federal agent, who works for the Commerce Department, said in the affidavit. ALX received a $1 million payment from a China-based company in January 2024 and other payments from companies in Hong Kong and China, not from the freight forwarding companies, the agent said. Nvidia H100s are advanced chips that can be used to train large language models and many other applications. Records show that from at least August 2023 to July 2024, ALX Solutions bought over 200 Nvidia H100 chips from San Jose, California-based server maker Super Micro Computer, declaring that the customers were in Singapore and Japan, the agent said. On one 2023 invoice valued at $28,453,855, ALX said the customer was in Singapore, but a US export control officer in Singapore could not verify the chips arrived in the country and the company did not exist at the listed location, the document says. 'This case demonstrates that smuggling is a nonstarter,' a Nvidia spokesperson said in a statement. 'We primarily sell our products to well-known partners…who help us ensure that all sales comply with U.S. export control rules.' Diverted products have 'no service, support or updates,' the statement added. Super Micro said in a statement it was 'firmly committed to compliance with all U.S. export control regulations.' It said it did not comment on ongoing legal matters, but cooperated with authorities in any such proceedings. Geng and Yang appeared in federal court in Los Angeles on Monday, the Justice Department said. Geng, a permanent resident, was released on $250,000 bond. Yang, who overstayed her visa, has a detention hearing on August 12. Lawyers for the defendants did not respond to requests for comment.
Yahoo
4 days ago
- Business
- Yahoo
Two arrested for smuggling AI chips to China; Nvidia says no to kill switches
The U.S. Department of Justice (DOJ) said on Tuesday that two Chinese nationals have been arrested for their alleged involvement in illegally shipping 'tens of millions of dollars' worth of high-performance AI chips to China. The DOJ said Chuan Geng and Shiwei Yang were arrested in California on August 2 and charged with violating the Export Control Reform Act, a felony that carries a statutory penalty of a maximum of 20 years in prison. Geng and Yang are accused of knowing and willfully shipping 'sensitive technologies,' including GPUs, to China from the U.S. through their California-based company, ALX Solutions. The DoJ did not name the company whose chips ALX Solutions was allegedly smuggling, but quoting a complaint, it said the chip is 'the most powerful chip in the market' and is 'designed specifically for AI applications.' That description makes it likely that the chips being smuggled were made by Nvidia. A report by Reuters specifically named Nvidia's H100 GPUs as the chips being shipped. A review of export documents by the DOJ found that ALX Solutions sent chips and other tech to shipping and freight-forwarding companies in Singapore and Malaysia, but received payments from entities in Hong Kong and China in return. The department also found records of communication regarding shipping the tech to Malaysia to specifically go around U.S. export restrictions. 'This case demonstrates that smuggling is a nonstarter,' an Nvidia spokesperson said in a statement. 'We primarily sell our products to well-known partners, including OEMs, who help us ensure that all sales comply with U.S. export control rules. Even relatively small exporters and shipments are subject to thorough review and scrutiny, and any diverted products would have no service, support, or updates.' The news comes as the U.S. tries to figure out how to strike a balance between fostering global AI innovation and imposing export restrictions to China, which many in the West perceive to be a major threat in the AI race. The Trump administration's recently-announced AI Action Plan belabored the importance of having strong export restrictions, but was light on details. One potential solution to curb chip smuggling that has been suggested by the U.S. government in recent days is to implement tracking technology into chips to help catch smuggling, but chipmakers are quite opposed to such a move. In a blog post on Tuesday, Nvidia said its GPUs do not include kill switches or backdoors, and argued that building in such tools would only result in compromising security. 'Nvidia has been designing processors for over 30 years. Embedding backdoors and kill switches into chips would be a gift to hackers and hostile actors,' the company wrote. 'It would undermine global digital infrastructure and fracture trust in U.S. technology. Established law wisely requires companies to fix vulnerabilities — not create them.' 'That's not sound policy. It's an overreaction that would irreparably harm America's economic and national security interests,' Nvidia wrote. Nvidia did not immediately return requests for additional comment. For more on the semiconductor industry's tumultuous year so far, here's a regularly updated timeline of market news since the beginning of 2025. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
