Crime does NOT Pay – Ding Facing Prison

31087845668?profile=RESIZE_400xA federal jury in San Francisco has convicted a former Google software engineer of economic espionage and theft of trade secrets, marking one of the most significant US prosecutions to date involving the theft of advanced artificial intelligence technology.  According to the US Department of Justice (DOJ), Linwei Ding, also known as Leon Ding, was found guilty on 14 federal counts, including seven counts of economic espionage and seven counts of theft of trade secrets, following an 11-day trial in the Northern District of California.  Prosecutors said Ding stole more than 2,000 pages of confidential Google documents while employed as a software engineer, focusing on proprietary technology used to build and operate Google's large-scale AI supercomputing infrastructure.  "The evidence at trial showed that Ding stole highly sensitive trade secrets related to Google's hardware and software for training artificial intelligence models," the DOJ stated.[1]

The stolen materials included detailed information on Tensor Processing Units (TPUs), GPU clusters, SmartNIC networking systems, and internal orchestration software used to manage massive AI workloads. Prosecutors emphasized that these technologies underpin the training and deployment of cutting-edge AI models.

While still employed at Google, Ding secretly affiliated himself with two China-based technology companies and later founded his own AI startup in China, according to the DOJ.  Evidence presented at trial showed Ding negotiated for a senior executive role at one company while simultaneously transferring Google's confidential data to personal cloud accounts.  In one instance cited by prosecutors, Ding told investors that his China-based company could replicate Google's AI infrastructure by "copying and modifying" Google's technology.

The DOJ also revealed that Ding applied to a Shanghai government-sponsored talent program, pledging to help China "achieve computing power on par with the world's most advanced technology."  Federal officials framed the case as a warning about insider threats targeting strategically sensitive technologies, particularly AI.  "The defendant stole trade secrets from his employer with the intent to benefit the People's Republic of China," the DOJ said, adding that the verdict demonstrates the government's commitment to protecting US innovation from foreign economic espionage.

Reuters reported that the case is part of a broader effort by the US government's Disruptive Technology Strike Force, which focuses on preventing the illegal transfer of advanced technologies to foreign adversaries.

Ding now faces significant prison time.  Under federal law, each economic espionage charge carries a potential sentence of up to 15 years in prison and a $5 million fine, while each trade secrets charge carries a potential sentence of up to 10 years in prison.  Sentencing will be determined by a federal judge in accordance with U.S. sentencing guidelines.  Ding is scheduled to return to court in early February for a status hearing ahead of sentencing.

Legal experts note that this conviction is among the first major US jury verdicts focused on AI-related economic espionage, underscoring how artificial intelligence infrastructure has become a focal point of national security enforcement.  As enterprises continue to race ahead with AI development, the case highlights the growing risks of insider access, misuse of cloud storage, and global competition for advanced computing capabilities.

 

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[1] https://www.secureworld.io/industry-news/google-engineer-espionage-ai-secrets-china

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