Dec. 9 (UPI) -- A Texas-based businessman has pleaded guilty and two others have been charged in a scheme to smuggle artificial intelligence technology to China in violation of U.S. export laws, the Justice Department announced Tuesday.
The U.S. Attorney's Office for the Southern District of Texas said the three men trafficked or attempted to traffic more than $160 million in Nvidia AI chips, which require special licensing from the U.S. government to be shipped.
"Operation Gatekeeper has exposed a sophisticated smuggling network that threatens our nation's security by funneling cutting-edge AI technology to those who would use it against American interests," U.S. Attorney Nicholas J. Ganjei said.
Alan Hao Hsu, aka Haochun Hsu, and his company, Hao Global LLC, pleaded guilty to smuggling and unlawful export activities on Oct. 10. Hsu is set to be sentenced Feb. 18 and faces up to 10 years in prison, while his company could be fined twice what it gained from the operation.
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