Former Google engineer indicted for stealing AI trade secrets

U.S. prosecutors expand charges against Linwei Ding, accusing him of economic espionage for China.

Visitors observe Google Inc.'s booth at the World Artificial Intelligence Conference (WAIC) at the Shanghai World Expo Exhibition and Convention Center in Shanghai, China, on July 7, 2024. Photo by CFOTO/Getty Images

By Anna Fadiah and Adila Ghina

U.S. prosecutors have unveiled an expanded 14-count indictment against former Google software engineer Linwei Ding, accusing him of stealing artificial intelligence (AI) trade secrets to benefit two Chinese companies. The indictment, announced on Tuesday, significantly increases the legal pressure on Ding, who had previously faced a four-count charge.

Ding, 38, a Chinese national also known as Leon Ding, was charged by a federal grand jury in San Francisco with seven counts of economic espionage and seven counts of theft of trade secrets. The economic espionage charges carry a maximum sentence of 15 years in prison and a $5 million fine each, while each trade secret theft charge could result in up to 10 years in prison and a $250,000 fine.

Ding, who remains free on bond, has not publicly responded to the expanded charges. His legal team did not immediately return requests for comment.

U.S. crackdown on AI-related espionage

Ding’s case is being prosecuted under the Biden administration’s Disruptive Technology Strike Force, an interagency initiative launched in 2023 to prevent the unauthorized transfer of advanced U.S. technology to foreign adversaries, including China and Russia. The task force has been at the forefront of countering AI-related espionage, a growing concern in U.S. national security circles.

Prosecutors allege that Ding stole confidential information related to the hardware infrastructure and software platforms powering Google’s supercomputing data centers. These data centers are critical to training large AI models and are considered key assets in the race for dominance in artificial intelligence.

Some of the stolen files allegedly contained chip blueprints that Google developed to reduce its reliance on semiconductor giant Nvidia and to compete more effectively against cloud computing rivals such as Amazon Web Services and Microsoft Azure. Prosecutors argue that these designs could have given Chinese tech companies a strategic advantage in the AI sector.

How Ding allegedly stole Google’s trade secrets

Ding, who joined Google in May 2019, is accused of beginning his data theft in 2022 after being approached by a Chinese startup. By May 2023, prosecutors claim he had uploaded over 1,000 confidential Google files.

According to court documents, Ding later presented a PowerPoint to employees at a Chinese startup he founded, promoting the country’s policies encouraging the development of a domestic AI industry. Authorities argue that this demonstrates his intent to leverage Google’s proprietary technology to benefit China’s AI sector.

Google has not been charged in the case and has stated that it fully cooperated with law enforcement throughout the investigation.

Growing concerns over AI and intellectual property theft

Ding’s indictment is part of a broader U.S. effort to counter intellectual property theft by foreign entities, particularly in the AI and semiconductor industries. Over the past decade, U.S. officials have warned that China’s government and businesses actively seek to acquire advanced technology through legal and illegal means.

The case follows a series of similar high-profile incidents in which engineers and researchers were accused of transferring sensitive information to Chinese companies or government-linked institutions. U.S. officials argue that such activities threaten America’s leadership in critical technologies and pose national security risks.

“The theft of cutting-edge AI and semiconductor technology undermines U.S. innovation and economic security,” an unnamed Justice Department official said following the indictment. “We will continue to take aggressive action against those who seek to exploit American advancements for the benefit of foreign adversaries.”

Potential legal resolution or trial ahead?

Court records from a December 18 hearing indicate that prosecutors and Ding’s defense attorneys have discussed a possible resolution to the case. However, officials have also signaled that the case may proceed to trial. If convicted on all charges, Ding could face a lengthy prison sentence and significant financial penalties.

The case, officially titled U.S. v. Ding, is being heard in the U.S. District Court for the Northern District of California.

Ding’s indictment underscores the growing tensions between the U.S. and China over AI and semiconductor technology. As AI becomes increasingly critical in defense, finance, and national security applications, U.S. authorities are tightening restrictions on technology transfers to China.

In recent years, Washington has implemented sweeping export controls aimed at limiting China’s access to advanced semiconductor manufacturing equipment and AI-related technologies. These measures have been met with pushback from Beijing, which argues that the U.S. is unfairly restricting China’s technological development.

Ding’s case could further strain diplomatic relations, as China has previously condemned U.S. efforts to prosecute Chinese nationals on espionage charges. Beijing has often accused Washington of unfairly targeting Chinese researchers and business professionals working in the U.S.

What’s next in the investigation?

As the case moves forward, legal experts say it could set a precedent for how the U.S. handles AI-related intellectual property theft. If Ding reaches a plea deal, it may provide insights into the methods foreign entities use to acquire sensitive U.S. technology. However, if the case goes to trial, it could offer a rare glimpse into how American prosecutors build cases against individuals accused of economic espionage.

For now, Ding remains free on bond, but his legal battle is far from over. The U.S. government is expected to continue cracking down on AI-related technology theft, signaling a tough stance on protecting intellectual property in an era of rapid technological advancement.

The outcome of this case could have lasting implications for tech companies, policymakers, and international relations, as the competition between the U.S. and China over AI dominance intensifies.