Two Charged for Smuggling High-Performance AI Chips to China

The U.S. Department of Justice (DOJ) has arrested two Chinese nationals, Chuan Geng and Shiwei Yang, for allegedly smuggling tens of millions of dollars worth of high-performance AI chips to China. The pair, linked to their California-based company, ALX Solutions, is accused of shipping sensitive technologies, including GPUs, in violation of U.S. export laws.
The DOJ identified the chips as "the most powerful in the market," specifically designed for AI applications. While explicitly named, reports suggest the chips were likely Nvidia's H100 GPUs. ALX Solutions allegedly routed shipments through Singapore and Malaysia to bypass U.S. restrictions, receiving payments from entities in Hong Kong and China.
Nvidia has distanced itself from the alleged smuggling, stating it primarily sells to reputable partners who ensure compliance with export controls. The company also rejected the idea of embedding kill switches or backdoors in its chips, arguing such measures would compromise security and undermine trust in U.S. technology.
The case highlights the U.S. government's efforts to balance fostering global AI innovation with curbing China's access to advanced technologies. While some have proposed tracking technology to combat smuggling, chipmakers like Nvidia oppose such measures, warning they could harm economic and national security interests.
This incident underscores the growing tensions between the U.S. and China in the AI race, as well as the challenges of enforcing export restrictions in a globalized tech landscape.

Published: 8/6/2025