High-stakes tech theft? 2 Chinese nationals charged with smuggling Nvidia AI chips

Nvidia

Amid ongoing tariff war, two Chinese citizens have been arrested in the United States for allegedly orchestrating a multimillion-dollar scheme to illegally export advanced AI chips to China, the US Department of Justice (DOJ) announced on Tuesday.

According to the DOJ, Chuan Geng and Shiwei Yang operated a California-based company, ALX Solutions, which over the past three years shipped restricted graphics processing units (GPUs), including Nvidia’s cutting-edge H100 chips, to China without obtaining the necessary export licences.

Court documents reviewed by the BBC reveal that ALX Solutions sent the AI chips—targeted by U.S. export controls to prevent Chinese access to sensitive technology—to freight forwarding companies in Singapore and Malaysia between October 2022 and July 2025. These locations, the DOJ said, were used to disguise the true destination of the shipments: China.

ALX’s shipments reportedly bypassed U.S. export regulations, and the company never received payments from the shipping intermediaries. Instead, transactions—including a $1 million payment in January 2024—came from businesses based in China and Hong Kong. One invoice from 2023, valued at over $28.4 million, falsely listed a Singapore-based customer as the buyer of Nvidia chips. However, U.S. officials later found that the company did not exist at the stated address, suggesting the chips were rerouted to unauthorized end users.

The DOJ said Geng managed ALX’s finances and Yang acted as company secretary. A third unnamed individual was listed as CEO. Geng is a permanent U.S. resident, while Yang had overstayed her visa and was residing illegally in the country.

In December 2024, U.S. Customs intercepted an ALX shipment containing restricted Nvidia H100 and GeForce RTX 4090 GPUs. Investigators later confirmed that no export licence had been applied for by ALX or its executives.

Nvidia, responding to the case, said attempts to smuggle its products are futile. A company spokesperson stressed that Nvidia only works with approved partners who follow U.S. export regulations, and that any diverted products would be ineligible for service or updates.

Super Micro Computer, a supplier named in the court filings, stated it is fully committed to compliance with export control laws and would cooperate with authorities but declined further comment due to the ongoing legal proceedings.

Yang was taken into custody on Saturday, while Geng surrendered voluntarily shortly afterward. Both made their initial court appearance in Los Angeles on Monday. If convicted, they face up to 20 years in prison.

Court documents indicate that ALX Solutions does not have an official website, though a related cloud services firm—ALX-Cloud—describes itself as a subsidiary.