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Two Chinese nationals in California accused of illegally shipping Nvidia AI chips to China
Two Chinese nationals in California accused of illegally shipping Nvidia AI chips to China

Yahoo

time5 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.

US charges Chinese nationals with Nvidia chips export breach
US charges Chinese nationals with Nvidia chips export breach

Miami Herald

time5 days ago

  • Business
  • Miami Herald

US charges Chinese nationals with Nvidia chips export breach

Two Chinese nationals were arrested this week on charges that they sent tens of millions of dollars worth of advanced AI chips made by Nvidia Corp. to China in violation of U.S. export restrictions, according to authorities. The defendants used a company based in El Monte, California, to export sensitive technology, including graphics processing units, used in artificial intelligence without obtaining the necessary government licenses, the Justice Department said in a statement Tuesday. According to a criminal complaint provided by the agency, the two individuals shipped Nvidia-designed chips, including the company's H100 AI accelerators, which are the basis for computers used to create and run artificial intelligence software. Such chips require official approval for sales to certain countries. The accused were identified by authorities as Chuan Geng, 28, of Pasadena, and Shiwei Yang, 28, of El Monte. They have been charged with violating the Export Control Reform Act and could face as much as 20 years in prison, according to the Justice Department. Lawyers for the Geng and Yang couldn't be immediately located for comment. "This case demonstrates that smuggling is a nonstarter," Nvidia said in a statement. The company said it primarily sells its products to well-known partners "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," Nvidia said. Over the past several years, the U.S. has steadily tightened restrictions on exports of semiconductors and chipmaking equipment to keep China from gaining ground in the race for AI dominance. The Trump administration is exploring ways to include enhanced location-tracking in AI chips to help with export control enforcement. Up until being superseded earlier this year by a new line of products from Santa Clara, California-based Nvidia, the H100s were considered the most capable such processors. Their export to China and other countries the U.S. has deemed a threat to national security requires licenses from the Commerce Department that are not usually given. In the complaint, authorities called the H100 "the most powerful GPU chip on the market" and claimed the defendants sought to evade U.S. export restrictions on it by shipping through third countries. The Justice Department said Geng and Yang operated a company called ALX Solutions Inc. that was founded in 2022 shortly after the U.S. Commerce Department began requiring licenses to sell such chips to overseas buyers. Export records and other business documents indicate that the company sent at least 20 shipments to shipping and freight-forwarding companies in Singapore and Malaysia but never received payments from those entities, the Justice Department said. ALX Solutions instead received "numerous payments" from companies based in Hong Kong and China, including a $1 million payment from a China-based company in January 2024, the DOJ said. Those records show that in December 2024, the company had sent a shipment of GPUs that it claimed was in compliance with U.S. export rules, the DOJ said, but neither ALX Solutions nor the defendants had received the U.S. licenses required for such a transaction. Authorities said they searched the ALX Solutions office and seized phones belonging to Geng and Yang and found evidence of communications about shipping chips covered by export controls to China through Malaysia in violation of U.S. restrictions. Yang was also accused of overstaying her visa, according to the Justice Department. Geng is a legal permanent resident, authorities said. A federal judge in Los Angeles on Monday ordered Geng released on a $250,000 bond and scheduled a detention hearing for Yang on Aug. 12. The court did not take any pleas in the case. The Commerce Department's Bureau of Industry and Security is assisting the probe, along with the Federal Bureau of Investigation. -With assistance from Ian King. (Updates with comment from Nvidia in sixth paragraph.) Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers.

China warns of repercussions of a possible Israeli occupation of the entire Gaza Strip
China warns of repercussions of a possible Israeli occupation of the entire Gaza Strip

See - Sada Elbalad

time5 days ago

  • Politics
  • See - Sada Elbalad

China warns of repercussions of a possible Israeli occupation of the entire Gaza Strip

Amir Hagag China's Deputy Permanent Representative to the United Nations, Geng Shuang, warned of the repercussions of a possible Israeli occupation of the entire Gaza Strip. Geng told the Security Council last night: "We urge Israel to immediately cease these dangerous actions, and all parties to immediately reach a binding and sustainable ceasefire agreement. We also urge countries with significant influence over the parties concerned to act in a fair and responsible manner and take concrete steps to help achieve a ceasefire," according to the Chinese news agency Xinhua. He noted that "Israeli military operations have resulted in the deaths of more than 60,000 civilians in Gaza, and innocent lives continue to be lost daily. The harsh reality has proven that military means are not a solution, and that an immediate ceasefire is the best way to save lives and return the hostages to their homes." Geng emphasized that "two million innocent civilians in Gaza should not be victims of war, nor should they endure further suffering from man-made disasters. Under the current unjust blockade, the humanitarian catastrophe in Gaza continues to worsen, with a severe famine looming." He emphasized that the full implementation of the two-state solution and the realization of an independent Palestinian state is the only viable way to resolve the Palestinian issue and prevent the recurrence of similar hostage crises. The international community should jointly oppose unilateral actions that undermine the foundations of the two-state solution and intensify efforts to advance the political process toward its realization. He added that China will continue to work with the international community to end the fighting in Gaza, alleviate humanitarian suffering, implement the two-state solution, and ultimately achieve a comprehensive, just, and lasting solution to the Palestinian issue. read more Gold prices rise, 21 Karat at EGP 3685 NATO's Role in Israeli-Palestinian Conflict US Expresses 'Strong Opposition' to New Turkish Military Operation in Syria Shoukry Meets Director-General of FAO Lavrov: confrontation bet. nuclear powers must be avoided News Iran Summons French Ambassador over Foreign Minister Remarks News Aboul Gheit Condemns Israeli Escalation in West Bank News Greek PM: Athens Plays Key Role in Improving Energy Security in Region News One Person Injured in Explosion at Ukrainian Embassy in Madrid News Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters Arts & Culture "Jurassic World Rebirth" Gets Streaming Date News China Launches Largest Ever Aircraft Carrier News Ayat Khaddoura's Final Video Captures Bombardment of Beit Lahia Business Egyptian Pound Undervalued by 30%, Says Goldman Sachs Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Arts & Culture South Korean Actress Kang Seo-ha Dies at 31 after Cancer Battle Arts & Culture Lebanese Media: Fayrouz Collapses after Death of Ziad Rahbani Sports Get to Know 2025 WWE Evolution Results

US government arrests two Chinese nationals for allegedly shipping Nvidia's ‘most powerful' AI chip
US government arrests two Chinese nationals for allegedly shipping Nvidia's ‘most powerful' AI chip

Time of India

time6 days ago

  • Business
  • Time of India

US government arrests two Chinese nationals for allegedly shipping Nvidia's ‘most powerful' AI chip

(Image via the United States Department of Justice) 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. Apple Confirms: Majority of iPhones Sold in US Are Now Made in India AI Masterclass for Students. Upskill Young Ones Today!– Join Now

U.S. charges Chinese nationals with illegally exporting chips to China
U.S. charges Chinese nationals with illegally exporting chips to China

UPI

time6 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.

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