Google said the company was able to act quickly and refer the case to law enforcement. AP
Google said the company was able to act quickly and refer the case to law enforcement. AP
Google said the company was able to act quickly and refer the case to law enforcement. AP
Google said the company was able to act quickly and refer the case to law enforcement. AP

Former Google engineer charged with stealing AI technology for Chinese firms


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A Chinese software engineer working for Alphabet's Google has been charged with stealing trade secrets from the company’s supercomputing data centres.

Linwei Ding, also known as Leon Ding, 38, a Chinese national and resident of Newark, California, who was hired by Google in 2019, has been charged with four counts of trade secrets theft related to artificial intelligence, the US Justice Department said on Wednesday.

He faces up to 10 years in prison and $250,000 in fines on each count if convicted.

“We allege the defendant stole artificial intelligence-related trade secrets from Google while secretly working for two companies based in China,” attorney general Merrick Garland said.

“We will fiercely protect sensitive technologies developed in America from falling into the hands of those who should not have them.”

A Google official said Mr Ding acted alone and that the company was quick to act and refer the case to law enforcement after discovering the problem.

“We have strict safeguards to prevent the theft of our confidential commercial information and trade secrets,” Google official José Castañeda said.

“We are grateful to the FBI for helping protect our information and will continue co-operating with them closely.”

Mr Ding allegedly transferred sensitive information from Google’s network to his personal email and cloud accounts while secretly affiliating himself with two China-based companies working in the AI industry.

Mr Ding allegedly helped form one of the unidentified companies. He did not disclose his connection to either company to Google. The Justice Department doesn’t allege that Mr Ding provided either of the companies with specific data he stole from Google.

The case marks the first significant enforcement action since deputy attorney general Lisa Monaco announced last month that the Justice Department’s disruptive technology strike force would focus on breaches related to the use or transfer of AI technology.

The US Attorney has recently prosecuted multiple cases over intellectual property theft, including three ex-Apple engineers accused of stealing trade secrets from the company’s autonomous driving project.

However, not all the office’s efforts have been successful.

Last month, a Chinese chipmaker was found not guilty of all charges in a rare economic espionage case, ending a five-year pursuit by prosecutors.

The technology he allegedly stole “involves the building blocks of Google’s advanced supercomputing data centres, which are designed to support machine learning workloads used to train and host large AI models”, according to the Justice Department.

While employed by Google, Mr Ding had access to confidential information about hardware, software and the AI models and applications they supported. He is alleged to have uploaded some of the information into personal accounts.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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