Two Chinese citizens arrested in the US for smuggling cutting-edge NVIDIA AI chips

The US has arrested two Chinese citizens in California for illegally exporting tens of millions of dollars worth of artificial intelligence chips, including the NVIDIA H100, to China, CNBC reports.

According to the Ministry of Justice, 28-year-old Chuan Geng and Shiwei Yang exported advanced microprocessors without the necessary licenses from October 2022 to July 2025.

The H100 is one of NVIDIA's most advanced chips, used in artificial intelligence, and from 2022 it will be subject to US export controls aimed at restricting China's access to advanced semiconductors.

The investigation revealed that the defendants’ company, ALX Solutions, was established shortly after the introduction of US restrictions. During the searches, correspondence was found about attempts to circumvent the laws, in particular, sending chips through Malaysia. In December 2024, the company made more than 20 shipments to Singapore and Malaysia, which are often used as transit points for smuggling. The payments did not come from official customers, but from companies in Hong Kong and China.

The FBI and the Bureau of Industry and Security are continuing their investigation. Geng and Yang are charged with violating the Export Control Reform Act, which carries a maximum penalty of 20 years in prison. Additionally, Yang was found to have been living in the United States illegally after her visa expired.

Smuggling of high-tech chips has become a pressing problem for Washington. According to the Financial Times , after Donald Trump tightened restrictions in early 2025, more than $1 billion worth of NVIDIA chips entered China. Under pressure from the US, Malaysia announced that it would introduce mandatory permits for the import of advanced AI chips. NVIDIA emphasizes that data centers on smuggled processors are a "losing strategy" and are not supported by the manufacturer.