Two Chinese language nationals have been arrested and charged with illegally transport tens of millions of {dollars}’ value of highly effective AI chips to China, the US Division of Justice (DOJ) mentioned on Tuesday.
The DOJ alleged that during the last three years ALX Options, an organization it mentioned 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 models (GPUs), which have turn into a key focus of US export controls aimed toward stopping China buying the cutting-edge know-how.
The case reveals that smuggling its chips “is a nonstarter,” an Nvidia spokesperson mentioned.
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 evaluation and scrutiny, and any diverted merchandise would haven’t any service, help or updates.”
In line with 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 mentioned.
Enterprise data 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 mentioned, noting that each nations are used as transit hubs to “conceal unlawful shipments” to China.
ALX by no means acquired funds from these transport corporations and would as a substitute be paid by different firms based mostly in Hong Kong and China. These included a $1m (£750,000) fee from a China-based agency in January 2024, mentioned 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 mentioned.
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 units 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 mentioned.
“It seems that ALX Options shipped the Nvidia merchandise to totally different finish customers.”
Tremendous Micro didn’t instantly reply to a request for remark from the BBC however mentioned in an announcement to the Reuters information company that it was “firmly dedicated to compliance with all US export management laws.”
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 mentioned.
The pair appeared in federal court docket in Los Angeles on Monday, the DOJ mentioned. 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 companies, 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 an announcement.
Further reporting by Peter Hoskins
