Former Google Engineer Faces New Charges for Stealing AI Secrets for Chinese Companies

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A former Google software engineer, Linwei Ding, has been hit with a new 14-count indictment, accusing him of stealing artificial intelligence trade secrets to benefit two Chinese companies. Ding, 38, a Chinese national, 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 charges stem from his actions during his time at Google, where he allegedly stole sensitive information related to the company’s supercomputing data centers, which are crucial for training large AI models.

Each economic espionage charge carries a maximum 15-year prison sentence and a $5 million fine, while each theft of trade secrets charge is punishable by up to 10 years in prison and a $250,000 fine. Ding was originally indicted in March 2023 on four counts of theft of trade secrets. He remains free on bond as his case proceeds. His defense lawyers have not yet commented.

The case is part of a broader initiative by the Biden administration, known as the Disruptive Technology Strike Force, which was launched in 2023 to prevent advanced technology from being acquired by adversarial countries like China and Russia. According to prosecutors, Ding began stealing proprietary information in 2022, after being recruited by a Chinese startup, and allegedly uploaded more than 1,000 confidential files before May 2023. These files reportedly included chip blueprints aimed at giving Google an edge in the competitive cloud computing industry, particularly against rivals like Amazon and Microsoft, as well as reducing its reliance on Nvidia chips.

Ding’s alleged thefts were discovered when he circulated a PowerPoint presentation detailing his plans for China’s AI industry to employees of the startup he co-founded. Google has not been charged and has cooperated with law enforcement throughout the investigation.

The case is being closely watched and may go to trial, although discussions have been held about a potential resolution.

Match Group Appoints Spencer Rascoff as CEO Amid Slowing User Engagement and Dour Revenue Forecast

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Match Group announced Tuesday that Spencer Rascoff, co-founder and former CEO of Zillow Group, has been appointed as its new CEO as the company looks to reverse slowing user engagement across its dating platforms, including Tinder. This move comes as Match Group faces challenges in attracting new users amid economic uncertainty and increased competition from rival Bumble, as well as social media platforms.

Shares of Match Group dropped by 9% in after-hours trading following the company’s forecast of annual revenue below Wall Street estimates. The forecast for 2025 revenue is expected to range between $3.38 billion and $3.50 billion, with the midpoint falling short of analysts’ expectations. The company also projected first-quarter revenue between $820 million and $830 million, lower than the expected $853.1 million.

The online dating app market has been seeing a decline in demand and user engagement, which Match Group attributes to factors such as economic instability and a lack of new features. In response, the company has introduced initiatives such as stronger verification systems and AI-driven dating features for Tinder. However, its total paying user base declined by 4% to 14.6 million in the quarter ending December 31, marking its ninth consecutive quarter of user losses.

Rascoff’s appointment signals Match Group’s focus on AI-driven business transformation, with expectations of substantial growth in 2026. Chandler Willison, an M Science research analyst, highlighted that Rascoff’s leadership could be integral to the company’s efforts to revitalize its portfolio and drive long-term growth. Rascoff joined Match’s board last year after discussions with activist investor Elliott Investment Management to improve performance. He succeeds Bernard Kim, who is stepping down as CEO.

Despite these efforts, Match’s forecast remains subdued, and analysts believe that AI initiatives will take time to contribute meaningfully to the company’s growth.

 

AMD Shares Drop as CEO Forecasts Declining Data Center Sales Amid AI Competition

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Shares of Advanced Micro Devices (AMD) plunged around 10% in after-hours trading on Tuesday after the chipmaker provided a disappointing forecast for its data center sales, particularly in the AI market. Despite exceeding quarterly revenue expectations, AMD’s outlook for 2024 failed to reassure investors, who have been anticipating the company’s larger push into AI, an area dominated by Nvidia.

AMD reported fourth-quarter data center revenue of $3.9 billion, missing the analyst consensus estimate of $4.15 billion. This segment is considered a key indicator of AMD’s AI revenue, as it includes sales of processors that compete with Nvidia’s chips. For 2024, the company reported generating over $5 billion in AI chip revenue but projected a 7% decline in data center sales for the current quarter. AMD’s CEO, Lisa Su, did not provide specific projections for AI chip sales but expressed confidence in achieving “tens of billions” in revenue over the coming years.

However, analysts, such as Kinngai Chan from Summit Insight, suggested that AMD’s AI GPU performance was not meeting market expectations. Meanwhile, Nvidia continues to lead the AI chip market with an 80% share, bolstered by its proprietary CUDA software, which remains a significant barrier for AMD to overcome. Competitors like Microsoft and Meta have also been developing their own custom AI chips, further intensifying the competitive landscape.

Despite these challenges, AMD is focusing on collaborations with its customers to create custom AI chips, aiming to close the gap with companies like Marvell and Broadcom. AMD remains optimistic about increasing sales of personal computer chips, as demand for PCs capable of handling generative AI tasks shows signs of recovery after a prolonged slump.

AMD’s forecasted first-quarter revenue of approximately $7.1 billion, slightly above analyst estimates, provided some relief, but the company’s position in the highly competitive AI chip market remains a point of concern for investors.