Latest news with #Nvidia-designed
Miami Herald
3 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 Up until being superseded earlier this year by a new line of products from Santa Clara, California-based Nvidia, the H100s were considered the most capable such processors.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.
The Star
4 days ago
- Business
- The Star
US charges Chinese nationals with Nvidia chips export breach
NEW YORK: 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 US 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 US 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 US 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 US 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 US 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 US 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 US export rules, the DOJ said, but neither ALX Solutions nor the defendants had received the US 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 US 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. - Bloomberg
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Business Standard
4 days ago
- Business
- Business Standard
Two Chinese nationals held in US for smuggling Nvidia AI chips to China
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 US 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. '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 US 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 US 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 US 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 US 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 US 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 US export rules, the DOJ said, but neither ALX Solutions nor the defendants had received the US 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 US 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.
Business Times
4 days ago
- Business
- Business Times
US charges Chinese nationals with Nvidia chips export breach
[WASHINGTON] Two Chinese nationals were arrested this week on charges that they sent tens of millions of US dollars worth of advanced AI chips made by Nvidia to China in violation of US 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 (AI), without obtaining the necessary government licenses, the Justice Department said on Tuesday (Aug 5). 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 AI 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 up to 20 years in prison, according to the Justice Department. Lawyers for the Geng and Yang could not be immediately located for comment. Spokespeople for Nvidia did not immediately respond to a request for comment. Over the past several years, the US 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. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 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, which the US has deemed a threat to national security, requires licenses from the Commerce Department which are not usually given. Geng and Yang operated a company called ALX Solutions that was founded in 2022, shortly after the US Commerce Department began requiring licenses to sell such chips to overseas buyers, the Justice Department said. Authorities said that 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 US 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 US$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. BLOOMBERG
Yahoo
4 days ago
- Business
- Yahoo
US Charges Chinese Nationals With Nvidia Chips Export Breach
(Bloomberg) -- 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 US export restrictions, according to authorities. Mayor Asked to Explain $1.4 Billion of Wasted Johannesburg Funds PATH Train Service Resumes After Fire at Jersey City Station All Hail the Humble Speed Hump 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 up to 20 years in prison, according to the Justice Department. Lawyers for the Geng and Yang couldn't be immediately located for comment. Spokespeople for Nvidia didn't immediately respond to a request for comment. Over the past several years, the US 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 US 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 US 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 US 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 US export rules, the DOJ said, but neither ALX Solutions nor the defendants had received the US 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 US 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 more from government complaint starting in eighth paragraph.) Russia's Secret War and the Plot to Kill a German CEO AI Flight Pricing Can Push Travelers to the Limit of Their Ability to Pay Government Steps Up Campaign Against Business School Diversity What Happens to AI Startups When Their Founders Jump Ship for Big Tech The GOP Is Choosing Pesticides Over the MAHA Moms ©2025 Bloomberg L.P.
