Newark, California – A former Google AI engineer, Leon Ding, was arrested by the Justice Department on Wednesday for allegedly stealing information about the company’s advanced technologies with the intention of setting up his own company in China. Ding, a 38-year-old Chinese national, faces four counts of trade secret theft and could potentially receive a maximum penalty of 10 years in prison and up to $1 million in fines if convicted.

The Justice Department labeled this case as a clear indication of the U.S. government’s commitment to preventing the illicit transfer of advanced U.S. technologies to China, especially amid a Cold War-like technological arms race between Washington and Beijing. U.S. Attorney General Merrick Garland emphasized that the theft of artificial intelligence and other advanced technologies poses a threat to national security.

According to court documents, Ding, while working at Google as a software engineer, began uploading confidential company information to a personal Google Cloud account in 2022. By 2023, he had uploaded over 500 files, including sensitive data related to chip architecture and software design specifications for “tensor processing units” and “graphics processing units.”

While still employed at Google, Ding also assumed the role of chief technology officer at Beijing Rongshu Lianzhi Technology, a China-based AI company. Additionally, he founded another company, Shanghai Zhisuan Technology, in China without disclosing this information to Google, according to the indictment.

Assistant Secretary Matthew Axelrod of the Commerce Department’s Office for Export Enforcement issued a warning to those considering transferring sensitive U.S. technology to China, emphasizing the potential legal consequences. The investigation into Ding was a joint effort by the Justice and Commerce departments’ Disruptive Technology Strike Force, aimed at safeguarding U.S. technologies from unauthorized acquisition by authoritarian regimes and hostile nation-states.

The FBI conducted a search of Ding’s residence on January 6, seizing electronic devices and other relevant evidence as part of the ongoing investigation. Both the U.S. and Chinese governments recognize artificial intelligence as a strategic emerging technology with significant economic and military implications. President Biden has issued executive orders to ensure the United States maintains a competitive edge over countries like China in AI development.

Attempts to reach Ding, Beijing Rongshu Lianzhi Technology, and Shanghai Zhisuan Technology for comment were unsuccessful. A Google spokesperson confirmed that the company had reported the case to federal officials, highlighting their strict measures to prevent the theft of confidential commercial information and trade secrets. After an internal investigation revealed the employee’s misconduct, Google promptly notified law enforcement authorities.