News Summary

• Two Chinese nationals have been arrested for their alleged involvement in illegally shipping tens of millions of dollars’ worth of high-performance AI chips to China.
• Chuan Geng and Shiwei Yang were arrested in California on August 2 and charged with violating the Export Control Reform Act.
• The DOJ did not name the company whose chips ALX Solutions was allegedly smuggling, but quoting a complaint, it said the chip is “the most powerful chip in the market” The news comes as the U.S. tries to figure out how to strike a balance between fostering global AI innovation and imposing export restrictions.