U.S. Charges Two Individuals with Illegally Exporting Advanced AI Chips to China

On August 5, 2025, the U.S. Department of Justice announced the arrest of two individuals, Chuan Geng and Shiwei Yang, both 28, for allegedly exporting advanced artificial intelligence (AI) chips to China without the necessary licenses. The charges pertain to the illegal shipment of Nvidia's H100 graphics processing units (GPUs), which are integral to AI applications.

Geng and Yang operated a company named ALX Solutions Inc., based in El Monte, California. Between October 2022 and July 2025, they are accused of facilitating over 20 shipments of these advanced GPUs to companies in Singapore and Malaysia. These countries are often used as transshipment points to reroute goods to China, circumventing U.S. export controls. Notably, in December 2024, a shipment of Nvidia H100 GPUs was falsely labeled and lacked the required authorization from the U.S. Department of Commerce.

Investigations revealed that ALX Solutions received payments from entities in Hong Kong and China, including a $1 million payment from a China-based company in January 2024. This financial activity further underscores the alleged illicit nature of the transactions. Additionally, communications obtained from searches of the defendants' office and personal devices indicated discussions about evading U.S. export restrictions by routing shipments through Malaysia.

Both individuals face charges under the Export Control Reform Act, with potential penalties of up to 20 years in prison upon conviction. Geng has been released on a $250,000 bond, while Yang, who is reported to have overstayed her visa, is scheduled for a detention hearing on August 12, 2025.

This case highlights the ongoing efforts by U.S. authorities to enforce export controls on sensitive technologies, particularly those related to AI, amid concerns over national security and technological competition.