California Man Charged in $300M Nvidia Chip Smuggling Case
- On Thursday, authorities arrested San Gabriel resident Greg Lui for allegedly smuggling more than $300 million in export-controlled computer servers containing high-end graphics processing units to China, federal prosecutors announced.
- Using Earthmade Computer Inc., Lui and co-conspirators allegedly shipped restricted hardware through Malaysia and Singapore with false documentation to bypass U.S. export license requirements between 2023 and 2024.
- Court papers show Earthmade received more than $176 million from two Malaysia-based shipping companies during the scheme, including one transaction involving 27 servers valued at about $7.6 million in January 2024.
- Lui faces up to 20 years in federal prison for export-control conspiracy and money laundering, plus 10 years for smuggling if convicted; he is scheduled for arraignment Friday in Los Angeles federal court.
- First Assistant United States Attorney Bill Essayli said the case protects national security by keeping "Super Intelligence" technology from being used to strengthen "our adversaries military capabilities," citing China's potential military advantage.
77 Articles
77 Articles
California man's smuggling scheme sent $300 million in AI hardware to China, feds say
The owner of a San Gabriel Valley-based technology company was arrested Thursday after federal prosecutors charged him with smuggling more than $300 million worth of restricted computer hardware to China.
US man arrested over alleged $300 million Nvidia server smuggling to China
Amid intensifying competition in the AI technology race, US authorities have arrested a California technology company owner accused of using Malaysia and Singapore as transit points to circumvent US export controls and send more than US$300 million worth of restricted computer servers to China. Greg Lui, 38, also known as Yiu Kong Lui, of San Gabriel, was arrested on Thursday and charged with conspiracy to violate US export controls, outbound sm…
Nvidia’s Shadow Supply Chain: How US Chips Flood China Despite Export Bans
Federal charges against a California man for smuggling $300 million in Nvidia AI chips to China highlight a persistent shadow trade. Despite tightened controls and company efforts, hundreds of thousands of restricted processors have reached Chinese data centers via Southeast Asia. Officials question Nvidia's oversight as the underground market thrives. New cases keep emerging.
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