Latest news with #ElMonte-based
Yahoo
3 days ago
- Business
- Yahoo
Two Chinese nationals in California accused of illegally shipping Nvidia AI chips to China
By Karen Freifeld (Reuters) -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 H100s, the U.S. 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 U.S. 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 U.S. 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 U.S. 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 U.S. 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 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.
UPI
4 days ago
- Business
- UPI
U.S. charges Chinese nationals with illegally exporting chips to China
The Department of Justice on Tuesday announced charges against two Chinese nationals accused of illegally shipping computer chips to China. File Photo by Bonnie Cash/UPI | License Photo Aug. 6 (UPI) -- Two Chinese nationals residing in California have been arrested and charged with violating export control laws by allegedly shipping advanced microchips used in artificial intelligence to China. The Justice Department announced the case against Chuan Geng, 28, of Pasadena, and Shiwei Yang, 28, of El Monte, in a statement Tuesday. Federal prosecutors said Geng, a lawful permanent resident, surrendered to authorities on Saturday, the same day Yang, an undocumented immigrant, was arrested. According to court documents, their El Monte-based company, ALX Solutions, allegedly exported tens of millions of dollars' worth of sensitive technology, including graphics processing units to China without federal authorization from October 2022 until last month. The prosecutors alleged that at least 20 shipments sent by the company before December 2024 went to what are called freight-forwarding companies in Singapore and Malaysia to conceal the illegal shipments to China. The company also received numerous payments from companies based in Hong Kong and China, which were not the entities they had claimed they were exporting goods to, the prosecutors allege. The charges follow a raid last week of ALX Solutions, during which law enforcement seized phones belonging to Geng and Yang containing what the Justice Department called "incriminating communications," including about shipping export-controlled chips through Malaysia to China to evade U.S. laws. On Monday, a Los Angeles court ordered Geng released on a $250,000 bond. Yang is scheduled for a detention hearing on Tuesday. Arraignment is scheduled for Sept. 12. If convicted of violating the Export Control Reform Act, each defendant faces a maximum penalty of 20 years in prison.
The Hindu
4 days ago
- Business
- The Hindu
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 H100s, the U.S. 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 obtaining the required licenses from the U.S. 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 U.S. imposed sweeping export controls on technology to China and began to require licenses for the chips. A spokesperson for Nvidia declined comment. Over 20 shipments from ALX went to shipping and freight forwarding companies in Singapore and Malaysia, which are often used as trans-shipment points for illegal goods to China, a federal agent, who works for the U.S. 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 for 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 declared to Super Micro the customer was in Singapore, but a U.S. export control officer in Singapore could not verify the chips arrived in the country and the company named did not exist at the listed location, the document says. Super Micro did not immediately respond to a request for comment. In addition to Nvidia's H100s, the pair is accused of illegally shipping Nvidia video graphics cards known as PNY GE Force RTX 4090, which also require a license for China. Geng and Yang appeared in U.S. District Court in Los Angeles late on Monday, according to the Justice Department. 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 immediately respond to requests for comment.
New Straits Times
4 days ago
- Business
- New Straits Times
Two Chinese nationals in California accused of illegally shipping Nvidia AI chips to China
UNITED STATES: Two Chinese nationals in California were arrested and charged with illegally shipping tens of millions of US dollars' worth of AI chips to China, including Nvidia 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 licences 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 modernisation and began to require licences 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 US$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 US$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 US 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 US 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 US$250,000 bond. Yang, who overstayed her visa, has a detention hearing on Aug 12.
Nikkei Asia
4 days ago
- Business
- Nikkei Asia
US accuses 2 Chinese of illegally shipping Nvidia AI chips to China
(Reuters) -- 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 H100s, the U.S. 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 obtaining the required licenses from the U.S. 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 U.S. imposed sweeping export controls on technology to China and began to require licenses for the chips. A spokesperson for Nvidia declined to comment. 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 U.S. 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 for 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 declared to Super Micro the customer was in Singapore, but a U.S. export control officer in Singapore could not verify the chips arrived in the country, and the company named did not exist at the listed location, the document says. Super Micro did not immediately respond to a request for comment. In addition to Nvidia's H100s, the pair is accused of illegally shipping Nvidia video graphics cards known as PNY GeForce RTX 4090, which also require a license for China. Geng and Yang appeared in U.S. District Court in Los Angeles late on Monday, according to the Justice Department. Geng, a permanent resident, was released on $250,000 bond. Yang, who overstayed her visa, has a detention hearing on Aug. 12. Lawyers for the defendants did not immediately respond to requests for comment.
