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Two Guys Allegedly Smuggle Nvidia Chips While Trump Sells ‘Cut’ on Same Deal

KEY POINTS

  • Two businessmen, Fanyue Gong from Brooklyn and Benlin Yuan from Mississauga, got arrested for smuggling Nvidia chips to China.
  • Authorities seized over $50 million in advanced GPUs during Operation Gatekeeper, part of a crackdown on export violations.
  • The bust follows a prior guilty plea by Houston’s Alan Hao Hsu, who exported $160 million worth of Nvidia chips illegally.

Fanyue 'Tom' Gong, 43, Brooklyn’s unofficial GPU courier, and Benlin Yuan, 58, Mississauga’s answer to high-stakes FedEx, got busted smuggling $50M worth of Nvidia H100 and H200 chips to China. This high-tech hustle crashed during 'Operation Gatekeeper,' a name fancy enough to mask the fact they just tried sneaking AI tech out like it was the latest iPhone. Meanwhile, Houston man Alan Hao Hsu already pleaded guilty to pilfering a whopping $160M in GPUs, proving this smuggling saga has more layers than a Vegas buffet. DOJ slapped conspiracy charges as US Attorney Ganjei dramatically declared chip control equals AI control (and thus world domination). All this while Trump announced the US will friendly sell those same chips with a 25% cut—because nothing says 'national security' like organized hypocrisy served with a side of capitalism. Chinese Embassy maintains citizens abroad must follow laws, but apparently smuggling GPUs doesn’t count as a no-no. Nvidia itself insists they keep a hawk eye on the secondary market while millions of these chips power mom’s home office and suspiciously savvy teenagers.

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Source: Axios | Published: 12/9/2025 | Author: Rebecca Falconer