US Arrests Greg Lui Over $300 Million Server Smuggling to China
Updated
Updated · The Guardian · Oct 2
US Arrests Greg Lui Over $300 Million Server Smuggling to China
3 articles · Updated · The Guardian · Oct 2
Summary
Greg Lui, 38, was arrested on charges of smuggling more than $300 million worth of export-controlled computer servers from California to China, the Justice Department said.
The servers contained US-made GPUs used for AI, and prosecutors say Lui used his company, Earthmade Computer, plus false paperwork to evade Commerce Department licensing rules.
Malaysia and Singapore served as transit points, with shipments sent there first and then illegally re-exported to China between 2023 and 2024, according to the DOJ.
A conviction could bring up to 50 years in prison as Washington intensifies efforts to keep advanced US chips from boosting China's AI and military capabilities.
How did a single California CEO manage to bypass global supply chain safeguards to funnel $300 million in restricted AI chips to China?
With restricted Nvidia GPUs slipping through Southeast Asia, are current export controls stopping China's AI ambitions or just fueling a lucrative black market?
Beyond the seized hardware, how much advanced AI capability did foreign tech hubs unlock before agents dismantled this massive smuggling ring in 2026?