(Bloomberg) — Two Chinese nationals were arrested this week on charges that they sent tens of millions of dollars worth of advanced AI chips made by Nvidia Corp. to China in violation of US export restrictions, according to authorities.

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The defendants used a company based in El Monte, California, to export sensitive technology, including graphics processing units, used in artificial intelligence without obtaining the necessary government licenses, the Justice Department said in a statement Tuesday.

According to a criminal complaint provided by the agency, the two individuals shipped Nvidia-designed chips, including the company’s H100 AI accelerators, which are the basis for computers used to create and run artificial intelligence software. Such chips require official approval for sales to certain countries.

The accused were identified by authorities as Chuan Geng, 28, of Pasadena, and Shiwei Yang, 28, of El Monte. They have been charged with violating the Export Control Reform Act and could face as much as 20 years in prison, according to the Justice Department.

Lawyers for the Geng and Yang couldn’t be immediately located for comment.

“This case demonstrates that smuggling is a nonstarter,” Nvidia said in a statement. The company said it primarily sells its products to well-known partners “who help us ensure that all sales comply with US export control rules.”

“Even relatively small exporters and shipments are subject to thorough review and scrutiny, and any diverted products would have no service, support or updates,” Nvidia said.

Over the past several years, the US has steadily tightened restrictions on exports of semiconductors and chipmaking equipment to keep China from gaining ground in the race for AI dominance. The Trump administration is exploring ways to include enhanced location-tracking in AI chips to help with export control enforcement.

Up until being superseded earlier this year by a new line of products from Santa Clara, California-based Nvidia, the H100s were considered the most capable such processors. Their export to China and other countries the US has deemed a threat to national security requires licenses from the Commerce Department that are not usually given.

In the complaint, authorities called the H100 “the most powerful GPU chip on the market” and claimed the defendants sought to evade US export restrictions on it by shipping through third countries. The Justice Department said Geng and Yang operated a company called ALX Solutions Inc. that was founded in 2022 shortly after the US Commerce Department began requiring licenses to sell such chips to overseas buyers.