HOUSTON – Federal prosecutors announced Monday the first-ever conviction in an artificial intelligence technology smuggling case, uncovering a sophisticated scheme to illegally export over $160 million worth of advanced computer chips to China through a network of shell companies and falsified shipping documents.

Alan Hao Hsu, who operated a Sugar Land-based shell company called HAO Global , pleaded guilty to smuggling charges along with two other businessmen who were arrested for allegedly helping divert restricted computer chips to China, U.S. Attorney Nicholas Ganjei said.

“This is just the beginning of Operation Gatekeeper,” Ganjei said during a press conference in Houston. “The Southern District of Texas will find each and every person or business working to illegally export thes

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