Two Chinese language nationals have been arrested and charged with illegally delivery thousands and thousands of {dollars}’ price 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.
Courtroom 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 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 don’t have any service, assist or updates.”
In keeping with courtroom paperwork, California-based ALX Options had three identified staff: Mr Geng dealt with the agency’s funds, Ms Yang was its secretary, whereas its chief government was not named within the paperwork.
The DOJ mentioned 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 delivery 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 obtained funds from these delivery corporations and would as a substitute be paid by different corporations primarily based in Hong Kong and China. These included a $1m (£750,000) cost 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 line with courtroom 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 have 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 courtroom 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 a press release to the Reuters information company that it was “firmly dedicated to compliance with all US export management laws.”
It added that it might 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 courtroom 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 an internet site, in line with courtroom paperwork. A web site for ALX-Cloud, which specialises in cloud computing providers, states that it’s a subsidiary of the corporate.
The BBC was unable to instantly find legal professionals for Mr Geng and Ms Yang however has contacted ALX-Cloud to request a press release.
Extra reporting by Peter Hoskins
