Chinese Nationals Arrested for Smuggling Nvidia RTX 4090s to China

The Alleged Smuggling Scheme Involving High-End Nvidia Graphics Cards and AI GPUs

Federal investigators have arrested two Chinese nationals, Chuan Geng and Shiwei Yang, who are accused of smuggling high-end Nvidia graphics cards and artificial intelligence (AI) processors into China. These items include the RTX 4090 and 5090 gaming graphics cards, as well as the H100 AI GPUs. The individuals allegedly violated U.S. export control laws by engaging in a smuggling operation through their company, ALX Solutions, based in the Los Angeles area.

The smuggling activities reportedly took place from October 2022 to July 2025. According to a criminal complaint, the suspects were found shipping Nvidia products—including PNY-branded RTX 4090 gaming graphics cards and the H100 AI GPUs—to Malaysia in December 2024. The shipment included 117 graphic cards valued at $176,500 and two graphical processing unit base boards worth $4,000.

A federal investigator from the Commerce Department noted that neither Geng nor Yang applied for an export license for these goods. Instead, they used an export code known as EAR99, which is typically reserved for low-technology consumer goods that do not require a license in most cases. This allowed them to bypass the strict export regulations imposed on advanced technology products.

The United States has taken steps to block shipments of high-end Nvidia GPUs like the RTX 4090 to China. These measures aim to prevent the Chinese government from acquiring advanced chips that could support its growing ambitions in artificial intelligence. However, despite these efforts, the Financial Times estimates that at least $1 billion in Nvidia AI chips were shipped to China this year.

The criminal complaint reveals that law enforcement conducted a search of ALX Solutions' office and seized phones belonging to both suspects. These devices allegedly contain evidence of their scheme to ship "export-controlled chips to China through Malaysia" in an attempt to evade U.S. export laws. Additionally, an Excel file discovered in Yang’s Google Drive account listed multiple shipments containing various models of the RTX 4090 and RTX 5090 GPUs.

Geng and Yang allegedly obtained the H100 GPUs from Super Micro, a U.S. server provider. One invoice showed that ALX Solutions paid $28 million for the GPUs, with Super Micro believing the shipment was intended for a company in Singapore. However, federal investigators confirmed that no such company existed. The suspects also sourced some GPUs from MiTAC Computing, another server provider.

ALX Solutions reportedly received wire transfers from various Hong Kong and Chinese companies, which were likely acting as intermediaries. Seized Google records also indicated that Chinese companies had contacted ALX Solutions about purchasing Nvidia GPUs.

The Justice Department announced the arrests as the Trump administration considers whether to implement a location-tracking system on Nvidia’s AI chips to prevent similar smuggling activities. However, Nvidia pushed back against the idea, arguing that such tracking would amount to installing a backdoor into the GPUs.

In response to the arrests, Nvidia stated that smuggling is not a viable option. The company emphasized that it primarily sells its products to well-known partners, including original equipment manufacturers (OEMs), who help ensure compliance with U.S. export control rules. Even smaller exporters and shipments undergo thorough review and scrutiny, and any diverted products would lose access to service, support, or updates.