California Man Charged in $300 Million Nvidia AI Chip Smuggling Case
US authorities arrested a California technology company owner accused of smuggling more than $300 million worth of servers containing Nvidia AI chips to China, allegedly using false paperwork and shipments through third countries to evade US export controls.
Greg Lui, 38, owner of Earthmade Computer Inc., allegedly used false end-user documents and routed equipment through Malaysia and Singapore to bypass US export-license requirements. Earthmade received more than $176 million from two Malaysian shipment companies between January and October 2024, prosecutors said.
The case concerns restrictions Washington introduced in October 2022 covering advanced computing chips, computers containing them and semiconductor manufacturing equipment. The Commerce Department said the measures aimed to limit China’s access to technology capable of supporting military systems and supercomputers. Their reach extended to certain foreign-produced equipment, reflecting an effort to control access beyond direct US shipments.
Washington reinforced those controls in October 2023 and clarified them in April 2024. Commerce cited the potential for advanced artificial intelligence to improve military decision-making, planning and logistics, underscoring why the restrictions cover computing systems as well as individual chips.
Lui faces charges of conspiring to violate export controls, outbound smuggling and money-laundering conspiracy. The allegations remain unproven, and he is presumed innocent. The announcement did not include a defense response.
