Two Chinese language nationals have been arrested and charged with illegally transport thousands and thousands of {dollars}’ price of highly effective AI chips to China, the US Division of Justice (DOJ) stated on Tuesday.
The DOJ alleged that over the past three years ALX Options, an organization it stated was run by Chuan Geng and Shiwei Yang, exported the chips from the US to China with out the required licences.
Court docket paperwork seen by the BBC allege the shipments included Nvidia’s H100 graphics processing items (GPUs), which have turn out to be a key focus of US export controls geared toward stopping China buying the cutting-edge know-how.
The case exhibits that smuggling its chips “is a nonstarter,” an Nvidia spokesperson stated.
Nvidia sells merchandise to well-known companions who assist to make sure that all gross sales adjust to US export management guidelines, she added.
“Even comparatively small exporters and shipments are topic to thorough overview and scrutiny, and any diverted merchandise would haven’t any service, help or updates.”
Based on court docket paperwork, California-based ALX Options had three recognized staff: Mr Geng dealt with the agency’s funds, Ms Yang was its secretary, whereas its chief govt was not named within the paperwork.
The DOJ said the three people exercised “full decision-making authority and cargo coordination” for the agency.
Mr Geng was a everlasting resident of California, and Ms Yang, was an “unlawful alien” who had overstayed her visa, a DOJ assertion stated.
Enterprise information confirmed the corporate despatched items a number of occasions from the US to transport corporations in Singapore and Malaysia between October 2022 and July 2025, the DOJ stated, noting that each nations are used as transit hubs to “conceal unlawful shipments” to China.
ALX by no means obtained funds from these transport corporations and would as an alternative be paid by different corporations based mostly in Hong Kong and China. These included a $1m (£750,000) cost from a China-based agency in January 2024, stated the DOJ.
Final December, ALX despatched a cargo with export-restricted computing chips – together with Nvidia’s H100 and GeForce RTX 4090 GPUs – which was checked by US customs, in accordance with court docket paperwork.
“Neither ALX Options nor Geng or Yang utilized for or obtained a license from the Commerce Division,” the paperwork stated.
In a single 2023 bill valued at greater than $28.4m, ALX allegedly declared to Tremendous Micro Laptop, a provider of Nvidia chips, that the gadgets had been ordered for a Singapore-based buyer.
However a US export management officer in Singapore couldn’t confirm that the chips arrived within the nation and the corporate named didn’t exist on the listed location, the court docket doc stated.
“It seems that ALX Options shipped the Nvidia merchandise to completely different finish customers.”
Tremendous Micro didn’t instantly reply to a request for remark from the BBC however stated in a press release to the Reuters information company that it was “firmly dedicated to compliance with all US export management rules.”
It added that it could not touch upon an ongoing authorized case however would cooperate with authorities in any such proceedings.
Ms Yang was arrested on Saturday whereas Mr Geng surrendered himself to the authorities quickly after, the DOJ stated.
The pair appeared in federal court docket in Los Angeles on Monday, the DOJ stated. If discovered responsible they may withstand 20 years in jail.
ALX Options doesn’t seem to have a web site, in accordance with court docket paperwork. An internet site for ALX-Cloud, which specialises in cloud computing providers, states that it’s a subsidiary of the corporate.
The BBC was unable to right away find attorneys for Mr Geng and Ms Yang however has contacted ALX-Cloud to request a press release.
Further reporting by Peter Hoskins
