US Cracks Down on Unlicensed Nvidia GPU Shipments: Investors on High Alert

The US Department of Justice has charged two Chinese nationals with illegally shipping high-end Nvidia AI chips to China. The chips, valued at millions of dollars, were sent through Singapore and Malaysia without the required Commerce Department licenses. Nvidia shares dipped on the news, reflecting investor concerns about tighter enforcement disrupting growth in international markets. The next milestone will be the August 12 hearing and any statements from the Commerce Department.

The U.S. Department of Justice has charged two Chinese nationals, Chuan Geng and Shiwei Yang, with illegally shipping high-end Nvidia AI chips to China. The chips, valued at tens of millions of dollars, were sent through Singapore and Malaysia without the required licenses from the U.S. Commerce Department [1][2][3].

Geng and Yang, who operate a company called ALX Solutions Inc., were arrested in California and are accused of exporting Nvidia H100s and other advanced technology to China from October 2022 through July 2025. These chips are crucial for AI applications, including large language models and self-driving cars [1][2][3].

The illegal exports came to light after authorities discovered over 20 shipments from ALX Solutions to shipping and freight forwarding companies in Singapore and Malaysia, which are often used as transshipment points for illegal goods to China. The company received payments from China-based entities, not the freight forwarding companies, further raising suspicions [1][2][3].

Nvidia shares dipped on the news, reflecting investor concerns about tighter enforcement disrupting growth in international markets. The next milestone will be the August 12 hearing, where the court will consider the detention of Yang, who overstayed her visa. Geng, a permanent resident, was released on a $250,000 bond [1][2][3].

The U.S. has been tightening restrictions on semiconductor exports to China, aiming to prevent the country from gaining a technological edge in AI. The Commerce Department's Bureau of Industry and Security is assisting in the probe, along with the Federal Bureau of Investigation [3].

The Commerce Department's role in this case underscores the importance of export control licenses for sensitive technology. The case will likely have implications for international trade and the global AI chip market [1][2][3].

References:
[1] https://www.reuters.com/business/autos-transportation/two-chinese-nationals-california-accused-illegally-shipping-nvidia-ai-chips-2025-08-05/
[2] https://www.investing.com/news/stock-market-news/chinese-nationals-charged-with-illegal-export-of-nvidia-ai-chips-to-china-93CH-4171165
[3] https://www.businesstimes.com.sg/international/us-charges-chinese-nationals-nvidia-chips-export-breach