"Federal authorities arrested four men for shipping contraband Nvidia chips, which are critical components for artificial intelligence companies. The men allegedly created an elaborate smuggling network that saw the chips shipped from Alabama through Malaysia and Thailand, and eventually to recipients in China, the Department of Justice announced on Thursday. The accused men failed to obtain such permission as they allegedly sought to evade export controls that restrict the shipment of Nvidia graphics processing units (GPUs)."
""As demonstrated by this indictment, the U.S. Attorney's Office for the Middle District of Florida is firmly committed to safeguarding our country's national security," said U.S. Attorney Gregory W. Kehoe for the Middle District of Florida in a statement. "Thanks to the dedicated investigative work by our law enforcement partners, these defendants who wrongfully exported this sensitive technology are facing justice.""
Four men were arrested for allegedly shipping contraband Nvidia GPUs through a smuggling network that routed shipments from Alabama through Malaysia and Thailand to recipients in China. The defendants allegedly evaded U.S. export controls that have restricted advanced computing chips and systems since October 2022. An indictment states the PRC military sought the chips for weapons design and testing, including weapons of mass destruction, and for advanced AI surveillance development. Authorities said China aims to lead in AI by 2030 and is building supercomputing capabilities. Arrests occurred in Florida, Alabama, and California and were announced by the Department of Justice.
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