Stern said that in text messages obtained by authorities, Li boasted that his father “engaged in similar activities on behalf of the Chinese Communist Party.” Stern claimed the messages also show that Li, who works at a hardware distribution company, knew from articles he shared that 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.
Stern told the court that during Wednesday’s interrogation by federal agents, Li “admitted various facts concerning him.”
The defendants face various charges related to violating export control laws, punishable by up to 20 years in prison.
Ho and Raymond did not immediately respond to requests for comment sent to LinkedIn accounts purported to be theirs. Public defenders for Chen and Li declined to comment.
Nvidia spokesman John Rizzo said in a statement that “even small sales of legacy products on the secondary market are subject to strict scrutiny and review” and that “attempting to connect data centers with smuggled products is not a good idea, both technically and economically.”
Corvex, an artificial intelligence cloud computing company for which Raymond consulted, said in a statement that it had withdrawn a job offer to him to join the company full-time and that it was unrelated to the alleged misconduct.
Earlier this year, the U.S. Department of Commerce was reportedly considering restricting sales of advanced chips to Malaysia and Thailand in an effort to curb chip smuggling, but the regulations have not yet been finalized. The Commerce Department did not immediately respond to a request for comment.
Magistrate Judge Westmore ordered Li to hire a lawyer because she found he had a significant equity interest in a San Leandro, California, home and other assets, making him ineligible for a public defender. The judge also scheduled a hearing for Tuesday to decide whether Li poses a stern flight risk and should continue to be held. He holds a US green card and Hong Kong citizenship.
Li, wearing glasses, flip-flops and a black windbreaker, nodded in response to some of Westmore’s comments but said nothing. Kaitlyn Fryzek, his interim public defender, said Li planned to marry a U.S. citizen. “His incentive is to stay and marry his fiancée,” Fryzek said.