California Tech CEO Arrested in $300 Million Nvidia AI Chip Smuggling Scheme to China
A California technology executive has been arrested and charged with allegedly orchestrating a scheme to smuggle more than $300 million worth of export-controlled computer servers containing advanced Nvidia graphics processing units (GPUs) to China.
Greg Lui, 38, also known as Yiu Kong Lui, owns Earthmade Computer Inc., a technology company based in City of Industry, California.
Federal prosecutors allege that Lui and unidentified co-conspirators used the company to purchase restricted high-end servers and secretly route them to China between 2023 and 2024 without obtaining the export licenses required by US law.
IBTimes Singapore previously reported that, as per the recent findings from Culper Research, Nvidia’s exposure to China could be significantly greater than previously disclosed, with billions of dollars in advanced AI chips and servers allegedly continuing to reach Chinese end users through intermediaries despite tighter U.S. export controls introduced in April 2025.
Servers Routed Through Malaysia and Singapore
According to an indictment returned on Sept. 29, the alleged operation relied on third-country shipments to conceal the servers’ ultimate destination.
The equipment was first sent to countries including Malaysia and Singapore, where the specific U.S. licensing restrictions did not apply, before allegedly being re-exported to Chinese buyers.
Prosecutors also accuse Lui and his co-conspirators of submitting false documentation to U.S. manufacturers. The paperwork allegedly identified permissible end users and destinations even though the defendants knew the servers were ultimately intended for China.
The servers contained high-end GPUs manufactured for advanced artificial-intelligence (AI) and “Super Intelligence” applications. U.S. authorities say such technology can contribute significantly to the military capabilities of other nations.
“SI is the defining technology of the era,” Assistant Attorney General for National Security John A. Eisenberg said, adding that the Justice Department’s National Security Division would protect America’s advantage in the chips powering the technology from illegal diversion.
$176 Million Received Through Malaysia-Based Companies
The indictment describes several transactions allegedly linked to the scheme. In January 2024, Lui reportedly communicated with a conspirator about a Malaysian transshipment company seeking to purchase 70 servers equipped with export-restricted GPUs.
Later that month, Lui allegedly submitted an order to a U.S. manufacturer for 27 servers valued at approximately $7.61 million. The equipment was shipped from Los Angeles to Kuala Lumpur, with the packing list identifying the servers as containing export-controlled GPUs that could not legally be sent to China without a license.
A month later, a co-conspirator allegedly informed a Malaysian government official that the 27 servers had been transshipped to a China-based buyer.
From January through October 2024, Earthmade allegedly received more than $176 million from two Malaysia-based shipment companies in connection with the operation.
Lui Faces Multiple Federal Charges
Lui has been charged with conspiracy to violate the Export Control Reform Act and Export Administration Regulations, outbound smuggling and conspiracy to commit money laundering.
If convicted on all counts, he could face maximum prison terms of 20 years for the export-control conspiracy, 20 years for the money-laundering conspiracy and 10 years for the smuggling charge.
“This defendant allegedly used false paperwork and shipments through third countries to smuggle more than $300 million in export-controlled computer servers to China,” First Assistant U.S. Attorney Bill Essayli said.
The FBI, the Department of Commerce’s Bureau of Industry and Security Office of Export Enforcement, and the Defense Criminal Investigative Service are investigating the case.
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