Two Chinese nationals have been charged by the U.S. Department of Justice (DOJ) for allegedly smuggling advanced Nvidia AI chips to China in violation of U.S. export control laws. The individuals, Chuan Geng and Shiwei Yang, are accused of operating a California-based company, ALX Solutions, which exported the restricted technology without the required licenses.
Court documents reviewed by the BBC reveal that over a three-year period, ALX Solutions shipped powerful GPUs including Nvidia’s H100 and GeForce RTX 4090 chips from the U.S. to third-party shipping companies in Singapore and Malaysia, widely recognized as transshipment hubs for goods bound for China. The DOJ says these exports occurred without approvals from the U.S. Commerce Department, in breach of national security regulations.
Geng, a permanent resident of California, managed the firm’s finances, while Yang, who had overstayed her visa and was considered an “illegal alien,” served as secretary. The DOJ states that the duo, along with an unnamed CEO, exercised full authority over the company’s operations and coordinated all shipments.
The case highlights ongoing U.S. efforts to curb China’s access to advanced semiconductor technology. Nvidia chips like the H100 are critical for AI development and have been placed under strict export controls.
According to investigators, ALX Solutions falsely declared customers in Singapore in export documents. In one instance, a 2023 shipment valued at over $28.4 million was reportedly destined for a nonexistent company in Singapore. The products were instead believed to have reached undisclosed Chinese end users.
Nvidia emphasized that any diverted chips would not receive support, service, or updates, and stressed that it only works with vetted partners to ensure compliance with export laws. Super Micro Computer, a major Nvidia supplier named in the case, stated its commitment to adhering to U.S. regulations and pledged to cooperate with authorities.
Yang was arrested on Saturday, while Geng surrendered to authorities shortly afterward. Both appeared in federal court in Los Angeles and could face up to 20 years in prison if convicted. ALX Solutions reportedly has no public-facing website, though a related cloud computing company, ALX-Cloud, claims to be its subsidiary.
