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The US Attorney's Office for the Southern District of New York has charged three people with illegally exporting NVIDIA GPUs to China in violation of the Export Control Reform Act. NVIDIA's chips have become a critical component in the rush to train and run increasingly complex artificial intelligence models, one the US has sought to manipulate with export controls and profit-sharing schemes with NVIDIA.
The three people, Yih-Shyan "Wally" Liaw, Ruei-Tsang "Steven" Chang and Ting-Wei "Willy" Sun, two employees and one contractor working for US IT company Super Micro Computer, allegedly circumvented export control laws via a multi-step scheme that involved creating fake orders for servers with NVIDIA chips from Southeast Asian companies, that were then secretly sent to China. The plan involved paying a logistics company to repackage the servers in Taiwan, staging dummy servers to be inspected by Super Micro Computer's compliance team and falsifying records so Liaw, Chang and Sun's employer was unaware where the servers were actually being sent.
The DOJ claims Liaw, Chang and Sun facilitated the illegal purchase of $2.5 billion worth of servers between 2024 and 2025 in direct violation of US export laws. Super Micro Computer is not named as a defendant in the US Attorney's indictment, but the company's stock price has been impacted by the scheme,
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Apple reveals details on the new AirPods Max 2, but the price is giving some folks sticker shock, since it costs nearly as much as the MacBook Neo. CNET's Bridget Carey discusses what makes the devices unique and her experience at Apple's surprise 50th-anniversary concert in New York City.
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