Two Chinese nationals arrested in the U.S. over GPU smuggling worth 'tens of millions of dollars' — over 20 shipments of AI chips and numerous illicit payments tracked

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They face up to 20 years in prison

Nvidia H100
(Image credit: Getty / Bloomberg)

The U.S. Department of Justice has arrested two Chinese nationals on a federal criminal complaint that alleges they exported AI GPUs worth tens of millions of dollars to China in exchange for cash. Chuan Geng, 28, of Pasadena, and Shiwei Yang, 28, of El Monte, face up to 20 years in prison if found guilty, according to the DoJ.

As stated in the press release, the two alleged offenders have been charged with violating the Export Control Reform Act. From October 2022 to July 2025, it is alleged that they used a company, ALX Solutions Inc., to "knowingly and willfully" export sensitive technology, including GPUs, from the U.S. to China without a license or authorization.

The release does not specify which chips the perps were allegedly moving between the U.S. and China. However, the chip (singular, implying only one variant), was made "by a manufacturer of high-performance AI chips" and is quoted as being "the 'most powerful GPU chip on the market,”' and is 'designed specifically for AI applications,'" including developing self-driving cars, medical diagnosis systems, and other AI powered applications. Therefore, it seems highly plausible that the chip in question is likely the Nvidia H100 or B200.

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Stephen Warwick
Stephen Warwick
News Editor

Stephen is Tom's Hardware's News Editor with almost a decade of industry experience covering technology, having worked at TechRadar, iMore, and even Apple over the years. He has covered the world of consumer tech from nearly every angle, including supply chain rumors, patents, and litigation, and more. When he's not at work, he loves reading about history and playing video games.

5 Comments Comment from the forums
  • endocine
    "An August 12 detention hearing has been set for Yang, who remains in custody because they are in the U.S. illegally, having overstayed their visa."

    oh my.
    Reply
  • magbarn
    All the feds have to do is pull up all the GPU / memory -less 4090/5090 boards on ebay/FB marketplace/offerup etc. and trace down the suppliers. But of course that's too much common sense for the government.
    Reply
  • helper800
    magbarn said:
    All the feds have to do is pull up all the GPU / memory -less 4090/5090 boards on ebay/FB marketplace/offerup etc. and trace down the suppliers. But of course that's too much common sense for the government.
    A lack of common sense is what would lead to saying, "just do X, Y , and Z," with no regards to the difficulty and nuance to each variable. You have to prove in a court of law the X, Y, and Z happened and were caused by persons U, V, and W. The standard is beyond a reasonable doubt.
    Reply
  • M0rtis
    At this point with the rampant theft of IP and technology that the US sees from Chinese nationals over the last couple of decades, even naturalized ones, Im surprised that more concrete measures are not being taken to curb this.

    Just the other day I was reading about how, somewhere in Alaska, I believe the local government is trying to seize back land bought by Chinese nationals that is adjoining a military base. How is this happening in the first place ?
    Reply
  • nrdwka
    magbarn said:
    All the feds have to do is pull up all the GPU / memory -less 4090/5090 boards on ebay/FB marketplace/offerup etc. and trace down the suppliers. But of course that's too much common sense for the government.
    why, they use china materials to build these GPU. No country should have power to forbid something other when on his own territory
    Reply