Two Southern California residents have been arrested on suspicion of knowingly exporting tens of millions of dollars’ worth of sensitive microchips used in artificial intelligence applications to China and have been charged with a felony, the Department of Justice announced on Tuesday.

Chuan Geng and Shiwei Yang, who owned and operated ALX Solutions Inc., were arrested on suspicion of illegally exporting "tens of millions" of dollars' worth of microchips, authorities said.

Two Chinese nationals in California were arrested and charged with illegally shipping tens of millions of dollars’ worth of AI chips to China, including Nvidia H100s, the US Justice Department said on Tuesday.