AI Chip Smuggling Ring Busted: Millions in Nvidia Chips Seized | JQJO

Two Chinese nationals, Chuan Geng and Shiwei Yang, were arrested in California for illegally exporting millions of dollars worth of advanced AI chips, including Nvidia's H100, to China. Their company, ALX Solutions, allegedly used Malaysia and Singapore to evade US export controls implemented in 2022. The DOJ investigation revealed incriminating communications and payments from Hong Kong and Chinese companies. Both face up to 20 years in prison for violating the Export Control Reform Act. Nvidia stated that it does not support unauthorized product sales and that smuggled chips render data centers ineffective.