California tech CEO charged with smuggling $300M in Nvidia AI servers to China
In short
US authorities arrested Greg Lui, also known as Yiu Kong Lui, the owner of California-based Earthmade Computer Inc., accusing him of smuggling more than $300 million worth of export-controlled Nvidia servers to China between 2023 and 2024. Prosecutors allege the hardware was routed through Malaysia and Singapore under false paperwork before reaching buyers in China, including the Chinese government. He was arraigned on October 1 on charges of export-control conspiracy, outbound smuggling and money-laundering conspiracy.
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US authorities have arrested a California technology executive accused of smuggling more than $300 million worth of export-controlled Nvidia AI servers to China. Greg Lui, also known as Yiu Kong Lui, owns Earthmade Computer Inc., which Newsweek reported is based in the City of Industry in Los Angeles County. The Justice Department announced the charges in a press release on October 1, according to Tom's Hardware. [ 1 , 3 ]
Prosecutors allege that Lui and unidentified co-conspirators smuggled the chips in high-end servers between 2023 and 2024, first exporting them to Malaysia and Singapore — jurisdictions where the restrictions do not apply — before shipping them to buyers in China, including the Chinese government. Authorities say the defendant and his co-conspirators used false paperwork to misrepresent the chips’ final destination, purporting that the controlled chips would go to permissible end users that did not require an export licence. “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 US Attorney Bill Essayli for the Central District of California said. [ 1 ]
The Justice Department charged Lui with one count of conspiracy to violate the Export Control Reform Act and the Export Administration Regulations, one count of outbound smuggling and one count of conspiracy to commit money laundering, Tom's Hardware reported. The two outlets give different maximum sentences: Tom's Hardware said he could face up to 20 years in prison if convicted on all charges, while Newsweek reported he could face up to 50 years. Newsweek said he is 38 and was arrested on Thursday. Tom's Hardware reported he was arraigned and made his initial appearance on October 1. [ 1 , 3 ]
The FBI, the Commerce Department’s Bureau of Industry and Security Office of Export Enforcement and the Defense Criminal Investigative Service are jointly investigating the case, according to Tom's Hardware, which noted that nine people were indicted in Taiwan last month over the illegal export of Nvidia B300 GPUs to China. [ 1 ]
Newsweek reported that Earthmade was founded in 2021 and marketed itself as a provider of server procurement, technology infrastructure and data-centre services. It said Lui’s technology career began in hosting and colocation services and that, before entering the sector, he helped launch a San Gabriel Valley restaurant specialising in Sichuan cuisine. The outlet also reported that the Justice Department said Earthmade received more than $176 million from two Malaysia-based shipping companies between January and October 2024. [ 3 ]
Ars Technica, in a short summary of the case, wrote that Nvidia’s chip-smuggling problem “won’t go away as arrests continue”. [ 2 ]
Why it matters
The case is the latest in a series of US prosecutions over exports of restricted AI hardware to China, a focus of American export-control enforcement. It also illustrates how third countries such as Malaysia and Singapore are alleged to have been used to move controlled chips, though the documents give no detail on the outcome of the case.
Key facts
- Greg Lui, also known as Yiu Kong Lui, owner of California-based Earthmade Computer Inc., was arrested and accused of smuggling more than $300 million worth of export-controlled Nvidia servers to China. [ 1 , 3 ]
- Prosecutors allege the servers were first exported to Malaysia and Singapore, where the restrictions do not apply, and then shipped to buyers in China, including the Chinese government, using false paperwork. [ 1 ]
- He was charged with one count of conspiracy to violate the Export Control Reform Act and the Export Administration Regulations, one count of outbound smuggling and one count of conspiracy to commit money laundering. [ 1 , 3 ]
- Tom's Hardware reported he could face up to 20 years in prison if convicted on all charges, while Newsweek reported a maximum of 50 years. [ 1 , 3 ]
- He was arraigned and made his initial appearance on October 1, the Justice Department said. [ 1 ]
- The FBI, the Commerce Department's Bureau of Industry and Security Office of Export Enforcement and the Defense Criminal Investigative Service are jointly investigating. [ 1 ]
- Newsweek reported Earthmade was founded in 2021 and is based in the City of Industry in Los Angeles County, and that the Justice Department said the company received more than $176 million from two Malaysia-based shipping companies between January and October 2024. [ 3 ]
- Tom's Hardware noted that nine people were indicted in Taiwan last month over the illegal export of Nvidia B300 GPUs to China. [ 1 ]
Confirmed by several sources
- US authorities arrested a California technology executive accused of smuggling more than $300 million worth of export-controlled Nvidia servers or GPUs to China. [ 1 , 2 , 3 ]
- The defendant, Greg Lui, also known as Yiu Kong Lui, owns the California company Earthmade Computer Inc. [ 1 , 3 ]
- He faces charges including conspiracy to violate export controls, smuggling and conspiracy to commit money laundering. [ 1 , 3 ]
- The servers are alleged to have been sent to China via third countries. [ 1 , 3 ]
Still unclear
- How much prison time Lui could face if convicted on all charges. Tom's Hardware reported a maximum of 20 years; Newsweek reported up to 50 years. The documents do not resolve the discrepancy.
- The identity or status of the alleged co-conspirators. Tom's Hardware refers to unidentified co-conspirators, and no document reports any other arrests or charges.
- Whether the Chinese government was among the end buyers of the servers. This is stated as an allegation in the Justice Department release as reported by Tom's Hardware; no other document mentions it.
- The full details of the payments Newsweek says Earthmade received from Malaysia-based shipping companies. The Newsweek text is truncated mid-sentence, so the purpose and total amount described are not stated.
- The Justice Department announced the case and said he was arraigned on October 1. Reported by a single source so far
What local media are saying
Timeline, local time
- Tom's Hardware publishes its report on the arrest and charges, citing the Justice Department press release of October 1. [ 1 ]
- Ars Technica publishes a summary describing continuing arrests in Nvidia chip-smuggling cases. [ 2 ]
- Newsweek publishes a profile of Greg Lui, reporting he was arrested on Thursday and adding details on Earthmade and his earlier career. [ 3 ]