Washington, Dec. 9 -- US authorities have dismantled another China-linked smuggling network accused of trafficking or attempting to traffic more than $160 million worth of export-controlled Nvidia AI chips, the Department of Justice announced on Tuesday.

Releasing a formal statement, authorities confirmed that two individuals connected to the network have been arrested, while a Houston-based company and its owner have already pleaded guilty to smuggling cutting-edge US-owned AI tech.

The arrest forms part of Washington's larger investigation into an alleged sophisticated scheme by third parties to funnel US tech to prohibited destinations like China, Hong Kong, and other state-entities identified as being "against US interests," by using ...