Feds say Houston-linked ‘Operation Gatekeeper’ broke $160M A.I. chip smuggling pipeline to China

The Brief

  • Federal prosecutors with the Southern District of Texas say a sophisticated smuggling network with ties to the Houston area illegally funneled some of the world’s most advanced artificial intelligence computer chips toward China and other restricted destinations, moving at least $160 million in hardware and taking in more than $50 million in overseas payments.
  • U.S. Attorney Nicholas J. Ganjei for the Southern District of Texas said the network posed a direct threat to national security by trying to ship cutting-edge A.I. technology to “those who would use it against American interests.”
  • Two businessmen are now in custody, and a Houston-area company and its owner have already pleaded guilty in the case, which investigators are calling “Operation Gatekeeper.”

HOUSTON Federal prosecutors with the Southern District of Texas say a sophisticated smuggling network with ties to the Houston area illegally funneled some of the world’s most advanced artificial intelligence computer chips toward China and other restricted destinations, moving at least $160 million in hardware and taking in more than $50 million in overseas payments.

Two businessmen are now in custody, and a Houston-area company and its owner have already pleaded guilty in the case, which investigators are calling “Operation Gatekeeper.”

U.S. Attorney Nicholas J. Ganjei for the Southern District of Texas said the network posed a direct threat to national security by trying to ship cutting-edge A.I. technology to “those who would use it against American interests.”

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