Two Chinese Nationals Arrested for Smuggling Millions in AI Chips Including Nvidia’s H100, Amidst US Efforts to Restrict China’s Tech Access
Two individuals of Chinese nationality, aged 28, have been apprehended and indicted in California for the illicit exportation of approximately $100 million worth of AI chips, including Nvidia’s H100 general processing units, according to the Department of Justice.
The accused, Chuan Geng and Shiwei Yang, allegedly shipped these sensitive chips and associated technology to China without obtaining the necessary licenses from October 2022 through July 2025.
The illicit shipments included Nvidia’s H100, one of the company’s most advanced AI chips. The Department of Commerce has classified such chips under export controls since 2022 as part of broader U.S. efforts to limit China’s access to advanced semiconductor technology.
Nvidia stated that they primarily sell their products to established partners who ensure compliance with U.S. export control regulations, adding that any diverted products would have no service, support, or updates.
ALX Solutions, the California-based company founded by Geng and Yang after the implementation of U.S. chip controls, reportedly had communications revealing plans to evade U.S. export laws by shipping sensitive chips to China via Malaysia. Law enforcement searches of ALX Solutions’ office led to the seizure of incriminating phones belonging to Geng and Yang.
Investigations have shown that in December 2024, ALX Solutions made over 20 shipments from the U.S. to shipping and freight-forwarding companies in Singapore and Malaysia, which are frequently used as transshipment points to conceal illicit shipments destined for China. ALX Solutions did not appear to receive payments from entities they claimed to have exported goods to; instead, they received numerous payments from companies based in Hong Kong and China.
The U.S. Department of Commerce’s Bureau of Industry and Security and the FBI continue to investigate this matter. The smuggling of advanced microchips has emerged as a significant concern in Washington, with reports suggesting that at least $1 billion worth of Nvidia’s chips were illegally exported to China following tighter chip export controls enacted earlier this year.