According to the U.S. Justice Department, two Chinese nationals in California were recently arrested and charged with illegally shipping tens of millions of dollars’ worth of AI chips to China.
The Justice department cited an affidavit filed with the complaint, claiming that the Chinese nationals exported the advanced Nvidia chips and similar technology to China during the period of October 2022 through July 2025. They did so without obtaining the required licenses from the U.S. Commerce Department.
The arrested have been identified as Chuan Geng, 28, of Pasadena, and Shiwei Yang, 28, of El Monte. The two founded an El Monte-based company, ALX Solutions, in 2022. This was shortly after the U.S. imposed export controls on technology to China and began to require licenses for chips exports.
Reports claim that ALX Solutions bought over 200 Nvidia H100 chips from Super Micro Computer, stating that the customers were in Singapore and Japan. However, a U.S. export control officer in Singapore could not verify that the chips arrived in the country. The company named did not exist at the listed location either.
Appearing in the U.S. District Court in Los Angeles late on Monday, Geng, was released on $250,000 bond. Yang has a detention hearing on August 12.
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10. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Number of Hedge Fund Holders: 64
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is one of the 10 AI Stocks Gaining Attention on Wall Street. On August 5, the company announced a native integration between CrowdStrike Falcon® Shield SaaS security and the OpenAI ChatGPT Enterprise Compliance API to provide visibility and governance for AI agents.
The integration will expand support to more than 175 SaaS applications. Crowdstrike announced that its Falcon Shield now discovers GPTs and Codex agents created in OpenAI’s ChatGPT Enterprise, thereby helping organizations enhance the governance of AI agent identities and also the human identities behind them.
The security agent tool can map each agent to its human creator in order to identify risky behavior and enforce policy when needed. Coupled with Falcon® Identity Protection, CrowdStrike is offering unified visibility and protection across every human and non-human identity so that organizations can better oversee AI agents.
“AI agents are emerging as superhuman identities, with the ability to access systems, trigger workflows, and operate at machine speed. As these agents multiply across SaaS environments, they’re reshaping the enterprise attack surface, and are only as secure as the human identities behind them. Falcon Shield and Falcon Identity Protection help secure this new layer of identity to prevent exploitation.”
-Elia Zaitsev, chief technology officer, CrowdStrike.
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a leader in AI-driven endpoint and cloud workload protection.
9. Palo Alto Networks, Inc. (NASDAQ:PANW)
Number of Hedge Fund Holders: 77
Palo Alto Networks, Inc. (NASDAQ:PANW) is one of the 10 AI Stocks Gaining Attention on Wall Street. On August 5, the company announced the launch of Cortex Cloud Application Security Posture Management (ASPM), a prevention-first application security module intended to block security issues before applications reach production environments.
The security module will allow security leaders and developers to fix security risks before cloud and AI applications have been deployed. This will be 10 times faster, more efficient, and also cost effective.
Moreover, Cortex Cloud ASPM includes an open AppSec partner ecosystem which will allow organizations to integrate data from their preferred third-party code scanners into a centralized platform for extensive visibility. The system will help identify security risks during the development phase rather than after.
The security module will integrate with Palo Alto’s existing Cortex Cloud platform, which combines cloud native application protection platform capabilities with cloud detection and response capabilities for real-time cloud security.
“As AI-generated code compresses application development from months to hours, security must evolve to protect the speed of innovation. Equipped with an industry-leading CNAPP, best-in-class CDR and now prevention-first ASPM, Cortex Cloud delivers the most comprehensive approach to cloud security and automatically stops risks before they reach production with end-to-end visibility across the entire application lifecycle.”
-Sarit Tager, VP of Product Management, Palo Alto Networks
Palo Alto Networks, Inc. (NASDAQ:PANW) is a leader in AI-powered cybersecurity.
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