Los Angeles, California – Two Chinese nationals have been arrested for allegedly orchestrating the illegal shipment of high-tech AI chips valued in the millions from the United States to China, the U.S. Department of Justice reported on Tuesday.

Chuan Geng and Shiwei Yang, officials of a company identified as ALX Solutions, allegedly exported these advanced chips without the appropriate licenses over the past three years. The high-profile case underscores ongoing concerns regarding U.S. export controls aimed at preventing the spread of sophisticated technology to China.

Court documents reveal that Nvidia’s H100 graphics processing units were among the items shipped. These chips have become particularly scrutinized due to their pivotal role in artificial intelligence development and U.S. export regulations designed to safeguard national security interests. An Nvidia spokesperson emphasized that smuggling these products is futile, asserting that the company partners with credible distributors to ensure compliance with export laws.

According to the DOJ, documents indicate that ALX Solutions employed only three individuals, with Geng managing finances and Yang serving as the secretary. The third employee’s identity has not been disclosed. Both Geng, a permanent resident of California, and Yang, who overstayed her visa, were said to possess full authority over the company’s logistics.

The DOJ’s investigation highlighted that ALX Solutions repeatedly sent shipments from the U.S. to firms in Singapore and Malaysia between October 2022 and July 2025. These countries are frequently used as logistical hubs to obscure illegal transactions directed toward China. Notably, ALX allegedly did not receive payments from these shipping entities directly; instead, payments were routed through other businesses based in Hong Kong and mainland China.

Additional details from the DOJ indicate that last December, U.S. Customs intercepted a shipment from ALX containing export-controlled computing chips, including the Nvidia H100 and GeForce RTX 4090. The documents specify that no license was sought or obtained for these exports, which are critical components for AI technology.

One invoice, valued at over $28.4 million, claimed the chips were intended for a customer in Singapore. However, a U.S. export control officer found no evidence that the shipment actually arrived in Singapore, and the customer mentioned in the invoice did not exist at the purported address. This raised suspicions about the true end-users of the equipment.

Super Micro Computer, a supplier to ALX Solutions, stated its firm commitment to adhering to U.S. export regulations. While the company refrained from commenting on the ongoing legal proceedings, it offered assurance of full cooperation with authorities.

Yang was arrested on Saturday, while Geng later turned himself in. Both individuals appeared in federal court in Los Angeles on Monday, facing charges that could result in maximum prison sentences of up to 20 years if convicted.

As authorities continue to investigate, ALX Solutions remains largely shrouded in mystery, lacking a public website. However, a related entity named ALX-Cloud, offering cloud computing services, claims to be a subsidiary of the company.

The case highlights not only the complexities of international trade and technology but also the increasing vigilance of U.S. regulatory bodies as they seek to combat illicit export activities that could compromise national security.