Latest news with #ShiweiYang
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
Yahoo
3 days ago
- Business
- Yahoo
Secret Nvidia Chip Smuggling Ring Busted -- $1M Payment Traced to China Sparks U.S. Crackdown
Two Chinese nationals have been arrested on charges of smuggling Nvidia's (NASDAQ:NVDA) most powerful AI chips to Chinadespite strict U.S. export controls designed to keep them out of Beijing's hands. According to the Justice Department, Chuan Geng and Shiwei Yang allegedly used a shell company in CaliforniaALX Solutions send Nvidia H100 chips through Singapore and Malaysia, without obtaining the required export licenses. Records show they never received payments from their Southeast Asian partners, but instead collected large sumslike a $1 million transfer in January 2024from buyers in Hong Kong and mainland China. Warning! GuruFocus has detected 5 Warning Signs with NVDA. The H100s, until recently Nvidia's flagship AI accelerators, require U.S. government approval before being sold to countries considered national security risks. Authorities claim the duo falsely labeled shipments as compliant, despite not having the green light from the Commerce Department. Nvidia, for its part, said it primarily works with trusted partners and that any diverted chips would lack service, updates, or support. Internal messages found on seized devices allegedly show the defendants discussing how to move restricted hardware through third countries, in what investigators believe was a deliberate attempt to circumvent U.S. controls. The case lands at a time when Washington is tightening the screws on China's access to cutting-edge semiconductors. While some headline chip deals grab attention, this case shows the U.S. is just as focused on backdoor smuggling by smaller players. One of the accused is a permanent U.S. resident, while the other is reportedly out of visa status. A judge has released Geng on bond, and a detention hearing for Yang is scheduled for August 12. If convicted, they could face up to 20 years in prison. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
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.
