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Two Chinese citizens in California are charged with smuggling Nvidia AI chips into China.

The U.S. Justice Department announced Tuesday that two Chinese nationals were arrested in California and charged with illegally delivering Nvidia H100s and other AI chips worth tens of millions of dollars to China.

According to a criminal complaint, Chuan Geng, 28, of Pasadena, and Shiwei Yang, 28, of El Monte, exported cutting-edge Nvidia chips and other technology to China between October 2022 and July 2025 without securing the necessary licenses from the U.S. Commerce Department.

The complaint claims that Geng and Yang's El Monte-based business, ALX Solutions Inc., was established in 2022, just after the United States started requiring licenses for the chips and enacted broad export restrictions on technology to China.


An Nvidia representative declined to comment.

Shipping and freight forwarding firms in Singapore and Malaysia, which are frequently used as transshipment hubs for illicit goods to China, received more than 20 shipments from ALX Solutions.
In January 2024, ALX received a $1 million payment from a Chinese company. Other payments came from companies in China and Hong Kong, not the freight forwarding companies.
Large language models can be trained using Nvidia H100s, which are sophisticated chips that can also be used for other purposes like creating self-driving cars and medical diagnostic systems.
According to documents, ALX Solutions purchased more than 200 Nvidia H100 chips from Super Micro Computer, a server manufacturer based in San Jose, California, between at least August 2023 and July 2024. The company claimed that the end users were in Singapore and Japan.
A request for comment from Super Micro was not immediately answered.
The two are charged with unlawfully shipping Nvidia video graphics cards, known as PNY GE Force RTX 4090, which also need a license to be exported to China, along with Nvidia's H100s.
The Justice Department said Geng and Yang made an appearance in U.S. District Court in Los Angeles late Monday. On a $250,000 bond, Geng, a permanent resident, was freed. On August 12, Yang, who overstayed her visa, will have a detention hearing.


SOURCE: NEWS AGENCIES

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