Former Google Engineer Cleared of Economic Espionage Charges in AI Trade Secrets Case

Yahoo Finance ·

On Thursday, U.S. District Court Judge Vince Chhabria in San Francisco dismissed economic espionage convictions against former Alphabet Inc. Google software engineer Linwei Ding, ruling that prosecutors failed to prove he intended to benefit the Chinese government. However, Chhabria upheld seven counts of trade-secret theft against Ding, who was convicted in January following an 11-day trial. Prosecutors stated Ding, who joined Google in May 2019, stole thousands of pages of confidential documents detailing the hardware and software infrastructure powering Google's AI data centers. Each economic espionage count carried up to 15 years in prison and a $5 million fine, while the remaining trade-secret charges carry up to 10 years and a $250,000 fine per count. Sentencing is scheduled for September 1. Meanwhile, Alphabet Class A shares fell 1.17% to close at $340.67, and Class C shares dropped 1.02% to $338.20 on Thursday.

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A U.S. federal court dismissed economic espionage charges against former Google engineer Linwei Ding, easing some legal burdens. However, seven counts of trade secret theft remain, with sentencing scheduled for September 1. Alphabet shares closed 1.17% lower amid the news.

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While this federal court ruling removes the worst-case legal risk of cross-border espionage in Google's core AI technology leak case, the conviction for trade secret theft still stands, highlighting the importance of technical security management.

Alphabet is expected to strengthen internal security audits over confidentiality leak issues related to AI data center infrastructure, and future sentencing results and compliance with security regulations are expected to be key variables in stock price trends.

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