California Man Charged with Smuggling $300M in AI Hardware to China
Greg Lui allegedly smuggled $300M in Nvidia GPU servers to China via Asia, violating export laws.
Why it matters: This case highlights rising legal risks in the export of AI hardware amid U.S. efforts to block advanced tech transfers to adversaries. Corporate counsel and compliance teams must sharpen vigilance on export controls.
- Greg Lui, owner of Earthmade Computer Inc. in California, allegedly bought and exported $300M in GPU servers to China without licenses.
- Servers were routed through Malaysia and Singapore, countries without license requirements, before being illegally sent to China.
- Lui faces charges including conspiracy to violate export laws, outbound smuggling, and money laundering; max penalties total 50 years.
- The indictment was returned on September 29, 2026, and Lui was arrested on October 1, 2026, in the United States.
Greg Lui, 38, also known as Yiu Kong Lui, owns Earthmade Computer Inc., a tech business in City of Industry, California. Between 2023 and 2024, Lui and his alleged co-conspirators procured over $300 million worth of high-end computer servers containing U.S.-manufactured Nvidia GPUs. They then exported these servers to China in violation of U.S. export control laws.
The operation involved shipping the servers first to countries like Malaysia and Singapore, where export licenses are not required. From there, the servers were illegally re-exported to China. This method was designed to circumvent the Export Control Reform Act and Export Administration Regulations.
Lui was federally charged with conspiracy to violate export controls, outbound smuggling, and conspiracy to commit money laundering. The indictment was unsealed after being returned by a grand jury on September 29, 2026, followed by Lui's arrest on October 1 in the United States. If convicted, Lui faces up to 20 years each on the conspiracy counts and 10 years on the smuggling charge.
The case underscores the United States government's focus on protecting national security by restricting advanced AI technology exports to potential military competitors, especially China. First Assistant U.S. Attorney emphasized the goal of preventing "advanced Super Intelligence technology from being used to strengthen our adversaries' military capabilities." John A. Eisenberg, Assistant Attorney General for National Security, highlighted that "SI is the defining technology of the era" and vowed to safeguard the U.S. chip advantage from illegal diversion.
Corporate counsel and compliance professionals should note the stringent enforcement climate surrounding AI hardware exports. This incident reveals how individuals may exploit routing through permissive countries to bypass export controls, heightening legal and compliance risks for companies involved in international tech shipments.
By the numbers:
- $300 million — value of GPU servers allegedly smuggled to China
- $176 million — payments received by Earthmade from Malaysia-based shipping firms between January and October 2024
- 50 years — maximum combined prison sentence for Lui if convicted on all charges