Nvidia chips smuggled to China in massive export violation. Two Chinese nationals in California arrested for illegally shipping tens of millions of dollars’ worth of AI chips, including Nvidia’s top-tier H100 GPUs.
Chuan Geng and Shiwei Yang operated ALX Solutions, a company founded right after US chip export controls launched in 2022. From October 2022 through July 2025, they sent restricted tech to China without licenses, evading rules by routing shipments through Malaysia and Singapore.
US DOJ seized phones and office data showing direct talks about bypassing export controls. ALX made 20+ shipments using freight firms in those transshipment hubs. Payments came mainly from Hong Kong and China, not from the ostensible buyers. 
The Department of Commerce put Nvidia’s sensitive chips off-limits for exports to China to curb AI tech transfer. Nvidia pushed back, describing smuggling as a “nonstarter.”
“We primarily sell our products to well-known partners, including OEMs, who help us ensure that all sales comply with U.S. export control rules.”
“Even relatively small exporters and shipments are subject to thorough review and scrutiny, and any diverted products would have no service, support, or updates.”
Washington’s worried about billions in leaked GPU tech helping China’s AI build-up. A Financial Times report last month flagged $1 billion worth of Nvidia chips entering China illegally post-Trump export rules. Nvidia said unauthorized uses are a “losing proposition.”
The FBI and Commerce’s Bureau of Industry and Security keep probing.
No signs yet if this sparks wider crackdowns or changes in chip export enforcement. But it’s another big hit in the ongoing US-China chip war.
