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
