The US sanctioned 5 Chinese entities tied to ex-Google engineer Linwei Ding, including the investor behind his startup.

Ding founded Shanghai Zhisuan Technology in 2023 to build software that speeds up machine learning training on supercomputing chips.

He applied to MiraclePlus, a Beijing incubator, claiming Zhisuan could replicate Google’s AI infrastructure, and MiraclePlus then took equity for seed capital.

The stolen material centred on how Google turns thousands of TPU and GPU chips into supercomputers, which matters more in China because export controls make efficient use of scarce chips one of the hardest problems in training large models.

Ding marketed that knowledge directly: in a Shanghai talent programme application he said his product would give China computing power infrastructure on par with the international level, and he later told MiraclePlus investors Zhisuan could adapt Google’s technology to China’s national conditions.

The designated entities face asset freezes, bans on transactions with US persons, and limits on financial services and foreign exchange licences.

The criminal case shrank after trial, because the judge overturned all 7 economic espionage counts for lack of evidence that Ding knew his conduct would benefit the Chinese government, leaving 7 theft convictions and a sentence of 12 months minus 1 day.