Ex-Google Engineer Busted Working with Chinese Companies, Faces Four Theft Counts for Stealing AI Trade Secrets

By Moon Harper

Mar 07, 2024 05:53 AM EST

The Justice Department on Wednesday accused an ex-Google software engineer, Linwei Ding, of stealing artificial intelligence trade secrets while collaborating with two Chinese-based companies.

The Chinese national was arrested on four counts of federal trade secret theft in Newark, California, with each carrying a maximum penalty of up to 10 years in prison.

The Dangers of Espionage to the U.S. Security

The charges against Ding, aged 38, were disclosed by Attorney General Merrick Garland during an American Bar Association conference in San Francisco, who, along with other law enforcement officials, has consistently warned about the dangers of Chinese economic espionage and the national security risks associated with artificial intelligence (AI) advancements and other emerging technologies.

FBI Director Christopher Wray emphasized the significance of the charges, highlighting them as another example of the extensive efforts by affiliates of Chinese-based companies to steal American innovation. Wray warned that the theft of innovative technology and trade secrets from American firms could lead to job losses and severe economic and national security repercussions.

Google's Guardrails on Trade Secrets

According to spokesman Jose Castaneda, Google maintains stringent measures to safeguard its confidential commercial information and trade secrets.

After conducting an investigation, Google determined that the employee had improperly obtained numerous documents, prompting It to involve law enforcement. Castaneda expressed gratitude for the FBI's assistance safeguarding the company's information and affirmed Google's commitment to continued cooperation.

Ding's defense attorney declined to comment on Wednesday evening.

Potential Harm of AI

Artificial intelligence is the main battleground for high-tech competitors, with significant commercial and security implications that could harm the United States.

Last month, Deputy Attorney General Lisa Monaco announced in a speech that the administration's multi-agency Disruptive Technology Strike Force would prioritize AI enforcement efforts. FBI Director Wray reiterated concerns at a conference last week, emphasizing how AI and other emerging technologies have facilitated attempts by adversaries to interfere with the American political process. Attorney General Garland echoed these sentiments at the San Francisco event, highlighting on Wednesday that, like all developing technologies, AI comes with both benefits and drawbacks, offering significant potential but also posing risks of substantial harm.

Ex-Google Engineer's Indictment

The indictment revealed on Wednesday in the Northern District of California claims that Ding, employed by Google since 2019 and entrusted with confidential information regarding the company's supercomputing data centers, allegedly began transferring hundreds of files to a personal Google Cloud account two years ago.

Prosecutors allege that shortly after the theft began, Ding was offered the position of chief technology officer at a Chinese early-stage technology firm specializing in AI technology. The position offered a monthly salary of around $14,800 and an annual bonus and company stock. According to the indictment, Ding traveled to China, attended investor meetings, and actively sought to raise capital for the company.

The indictment also stated that he founded and led a startup company in China, aiming to develop large AI models powered by supercomputing chips.

According to prosecutors, Ding did not reveal any association with Google, which referred to him on Wednesday as a junior employee. He resigned on December 26th.

Three days later, Google officials discovered that Ding had represented himself as the CEO of one of the Chinese companies at an investor conference in Beijing. Surveillance footage also showed another employee scanning Ding's access badge at the U.S. Google building where he worked, creating Ding's appearance when he was actually in China, according to the indictment.

Google suspended Ding's network access, locked his laptop, and investigated his unauthorized uploads by examining his network activity history.

In January, the FBI obtained a search warrant for Ding's home and confiscated his electronic devices. Later, the FBI obtained another warrant for the contents of his personal accounts, which contained over 500 unique files of confidential information allegedly stolen from Google.