Two arrested for smuggling AI chips to China — Nvidia says no to kill switches

US Judicial Department (DOJ) D Two Chinese citizens who were arrested on Tuesday were arrested for illegally involvement in shipping in China.

The DOJ reported that Chuan Jeg and Shiway Young were arrested in California on August 2 and were accused of violating the export control reform law, which is a crime that carries a maximum of 20 years of imprisonment.

Genog and Young have been accused of knowing and deliberately shipping “sensitive technology” with GPU in the US through ALX solution, ALX solution.

The DOG did not name the company’s Chips ALX solutions to smuggle, but quoted the allegations, saying that the chip was “the most powerful chip of the market” and “it is designed for AI applications especially.” This description probably made it the chips smuggled by Nvidia. Ay Reuters report Especially named as Nvidia H1 100 GPU is named as the chips are shipped.

A review of export documents exported by the DOJ showed that ALX Solutions sent chips and other technologies to shipping and freight-forking companies in Singapore and Malaysia, but paid from the entity of Hong Kong and China. The department also found a record of communication on technology shipping in Malaysia, especially the US export sanctions.

“The case proves that smuggling is a nonstarter,” a spokesman for Nvidia said in a statement. “We initially sell our products to well -known partners with OMS, who help to ensure that all our sales can comply with US export control rules.

The news has come up with trying to balance the global AI innovation in the United States and trying to balance China to impose export restrictions, which many people in the West seem to be a major threat to the AI race. Trump administration has recently been announced AI Action Plan The view of the export ban was the importance of the ban, but the details were light.

In recent days the US government is a possible solution to the proposed chip trafficking Apply tracking technology to chips To help catch smuggling, but the chipmerers are opposed to this national move.

A Blog post on TuesdayNvidia says that its GPUs do not include kill switch or backdoor, and argued that the building on these national equipment would simply compromise with protection.

The company wrote, “Nvidia has been designing the processor for more than 3 years. Embeded in the back and switches on the chips would be a gift to hackers and adverse actors,” the company wrote. “It will eradicate the Fracture Trust in the global digital infrastructure and US technology. Established laws are needed to solve the weaknesses with the intelligence of the established laws – they do not make them.”

Nvidia writes, “This is not a great policy. This is an excessive response that will damage the economic and national security interests of America irreparable.”

Nvidia did not immediately return the requests for additional comments.

For more information about the unsettled year of the semiconductor industry, here is a Regular update timeline Bazar news from the beginning of 2025.