US Justice Department accuses two Chinese men of trying to smuggle Nvidia chips

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US Justice Department accuses two Chinese men of trying to smuggle Nvidia chips

By reuters.com
Publication Date: 2025-12-09 00:00:00

Item 1 of 2 H100, Nvidia’s GPU optimized to handle large artificial intelligence models used to create text, computer code, images, video or audio is seen in this photo, Santa Clara, CA, U.S., September 2022. NVIDIA/Handout via REUTERS

[1/2]H100, Nvidia’s GPU optimized to handle large artificial intelligence models used to create text, computer code, images, video or audio is seen in this photo, Santa Clara, CA, U.S., September 2022. NVIDIA/Handout via REUTERS Purchase Licensing Rights, opens new tab
  • Prosecutors say Nvidia chips were obtained through straw purchasers and intermediaries
  • Prosecutor says “sophisticated smuggling network” threatened US security
  • Scheme is said to have operated since at least November 2023
WASHINGTON, Dec 8 (Reuters) – Two Chinese men are in custody for allegedly smuggling Nvidia (NVDA.O), opens new tab H100 and H200 chips to China, the U.S. Justice Department said on Monday, as President Donald Trump gave the green light for Nvidia to export its H200 chips to Beijing.

Prosecutors allege that Fanyue Gong, 43, a Chinese citizen living in New York, and Benlin Yuan, 58, a Canadian citizen from China, independently conspired with employees of a Hong Kong-based logistics company and a China-based AI technology company to circumvent U.S. export controls, according to the Justice Department.

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In court documents, prosecutors said that Gong and his co-conspirators obtained the Nvidia chips through straw purchasers and intermediaries, and falsely…

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