Summary
Two businessmen are in custody for allegedly trying to smuggle Nvidia H100 and H200 chips to China, as stated by the U.S. Department of Justice. The U.S. government recently announced that it would lift a ban on the export of these chips to China, but the two men are accused of using illegal methods to bypass export controls. The case is part of an investigation called "Operation Gatekeeper."
Key Facts
- Two men, Fanyue Gong from New York and Benlin Yuan from Canada, are accused of smuggling Nvidia chips to China.
- These chips are advanced graphic processing units (GPUs) crucial for AI technology.
- The Department of Justice's "Operation Gatekeeper" seized more than $50 million worth of these GPUs.
- The men allegedly worked with a Hong Kong logistics company and a Chinese AI firm to bypass U.S. export controls.
- Alan Hao Hsu and his company, Hao Global LLC, admitted to related smuggling charges involving $160 million worth of chips.
- If convicted, Yuan faces up to 20 years in prison, while Gong could face up to 10 years.
- The Chinese Embassy in Washington emphasized that Chinese citizens abroad should follow local laws.
- Nvidia stated it works to prevent illegal sales of second-hand GPUs.
