Summary (tl;dr)

Greg Lui, a California technology executive, has been arrested and charged by the U.S. Department of Justice for allegedly orchestrating a $300 million scheme to smuggle export-controlled Nvidia AI computer servers to China, circumventing U.S. national security export laws.

Essential Background

The U.S. government has implemented strict export controls on advanced artificial intelligence (AI) technology, particularly high-end Graphics Processing Units (GPUs) like Nvidia's A100 and H100 chips, to countries like China. These regulations are in place to safeguard U.S. national security and foreign policy interests, as such powerful "Super Intelligence" (SI) technology could significantly contribute to the military capabilities of other nations. Companies are required to obtain specific licenses from the U.S. Department of Commerce before exporting these controlled items to certain destinations.

The Full Story

Greg Lui, 38, also known as "Yiu Kong Lui," of San Gabriel, California, and owner of Earthmade Computer Inc. based in the City of Industry, was arrested on October 1, 2026. He faces a federal indictment with charges including conspiracy to violate the Export Control Reform Act, outbound smuggling, and conspiracy to commit money laundering. According to the indictment, from 2023 to 2024, Lui and his co-conspirators allegedly used Earthmade Computer Inc. to purchase hundreds of millions of dollars worth of export-controlled computer servers equipped with Nvidia GPUs from U.S. manufacturers. To bypass the required U.S. export licenses for China, they allegedly provided false documentation to manufacturers, misrepresenting the ultimate destination of the equipment. The scheme involved shipping these items to countries like Malaysia and Singapore, where export licenses were not required, and then illegally re-exporting them to China. Prosecutors allege that over $300 million worth of restricted computer hardware was smuggled through this elaborate transshipment network, with one Chinese purchaser described as an industrial company based in Hangzhou. If convicted on all charges, Lui could face up to 20 years in prison for each conspiracy count and up to 10 years for the smuggling count.

Why It Matters

This case underscores the U.S. government's ongoing efforts to enforce export controls and prevent advanced American technology from falling into the hands of potential adversaries, particularly amid intensifying competition in the AI technology race. The illegal export of these "Super Intelligence" chips poses a significant risk to U.S. national security by potentially strengthening the military capabilities of other nations. The Department of Justice emphasizes its commitment to aggressively prosecuting those who prioritize profit over national security. This arrest is part of a broader crackdown, highlighting how an expanded network of criminals attempts to reroute Nvidia's AI chips to China, profiting from the export controls.

Geographic Location

• San Gabriel, Los Angeles County, California, United States (Greg Lui's residence and arrest location)
• City of Industry, Los Angeles County, California, United States (Headquarters of Earthmade Computer Inc.)
• Los Angeles, Los Angeles County, California, United States (Federal court where Lui is expected to be arraigned, origin point for some shipments)
• Malaysia (Transshipment country for smuggled goods)
• Kuala Lumpur, Malaysia (Specific destination for a shipment of 27 servers before re-export to China)
• Singapore (Transshipment country for smuggled goods)
• Hangzhou, Zhejiang Province, China (Location of the Chinese purchaser)
• Hong Kong, China (Intermediate port for re-routing)
• China (Ultimate destination of smuggled goods)