Two Chinese Nationals Arrested for Smuggling AI Chips to China

• Two Chinese nationals were arrested for smuggling AI chips to China.
• Nvidia denies the existence of hidden kill switches in its chips.
• The U.S. is considering legislation regarding the control of chip exports.

This was reported by TechCrunch, The Verge, Asharq Al-Awsat.

On August 2, 2025, in California, two Chinese nationals, Chuan Gen and Shi Wei Yan, were arrested under suspicion of illegally exporting high-performance AI chips to China. The U.S. Department of Justice stated that the detainees violated the Export Control Reform Act, which carries penalties of up to 20 years in prison.

ALX Solutions, the company associated with the detainees, is accused of shipping sensitive technologies, including graphics processors (GPU), to China through third countries, such as Singapore and Malaysia. This occurs amid increasing scrutiny over the export of technology that is sent to China.

In response to these events, Nvidia, one of the leading chip manufacturers, stated that its products do not have "hidden kill switches" or "backdoors." The company emphasized that such mechanisms would only weaken security and encourage misuse. In Nvidia's blog, it was noted that such requirements for building technology traceability could lead to serious risks.

Meanwhile, in the U.S., there are ongoing discussions about legislation that would require chip manufacturers to provide technology for detecting illegal transportation. Nvidia opposes these initiatives, asserting that they could harm the economic and national interests of the U.S.

Tags: USA/Politics/Technology/AI/Crime