"Stern said text messages obtained by authorities show Li boasting about how his father "had engaged in similar business on behalf of the Chinese Communist Party." Stern alleged the messages also show Li, who works at a hardware distribution company, was aware through news articles he shared that the Nvidia chips were subject to export controls. "He explained that his father had ways to import them," Stern said, again citing Li's text messages."
"Nvidia spokesperson John Rizzo said in a statement that "even small sales of older generation products on the secondary market are subject to strict scrutiny and review" and that "trying to cobble together datacenters from smuggled products is a nonstarter, both technically and economically." Corvex, an AI cloud computing business Raymond consulted for, said in a statement that it had rescinded a job offer for him to join the company full time and that it had no connection to the alleged wrongdoing."
"Earlier this year, the US Department of Commerce was reportedly considering restricting the sale of advanced chips to Malaysia and Thailand in an effort to curb chip smuggling, but the regulations have yet to be finalized. The Commerce Department did not immediately respond to a request for comment. Magistrate Judge Westmore ordered Li to hire an attorney because she said he had significant equity in a San Leandro, California home and other assets, making him ineligible for a public defender."
Text messages show Li boasting his father "had engaged in similar business on behalf of the Chinese Communist Party" and sharing articles indicating Nvidia chips were subject to export controls. Li reportedly told others his father "had ways to import them" and admitted facts during federal questioning that implicated him. The defendants face charges for violating export control laws and up to 20 years in prison. Nvidia said secondary-market sales of older products face strict scrutiny and called attempts to assemble datacenters from smuggled parts a nonstarter. Magistrate Judge Westmore ordered Li to hire an attorney due to equity in a San Leandro home.
Read at WIRED
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