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2 clusters · 47 sources · 4 days · First seen · Last updated

US arrest in AI chip smuggling scheme to China

Overview

Greg Lui, CEO of California-based Earthmade Computer Inc., has been arrested on federal charges for allegedly orchestrating a smuggling scheme involving over $300 million worth of restricted AI hardware destined for China.

According to the U.S. Department of Justice and FBI, the operation occurred between October 2023 and August 2026. The indictment alleges that Lui and co-conspirators used falsified documentation and stolen identities to misrepresent the final destination of high-end servers containing NVIDIA GPUs, such as the A100 and H100 models, as well as consumer-grade GeForce RTX 4090 and 5090 models.

To evade U.S. export controls, the hardware was reportedly routed through Malaysia and Singapore, transiting through Hong Kong before reaching end-users in mainland China, including an AI hub in Hangzhou. The illicit activities allegedly generated more than $176 million in profit for Earthmade Computer. Lui faces multiple counts, including conspiracy to violate export control laws, smuggling, and money laundering, which carry potential prison sentences of up to 20 years.

Entities

U.S. Department of Justice · Greg Lui · Nvidia · China · US Department of Justice

Timeline

  1. [TECHNOLOGY] 2 sources
    NVIDIA chip smuggling suspect arrested in $300 million scheme

    U.S. authorities arrested Earthmade Computer CEO Greg Lui for allegedly smuggling over $300 million in restricted NVIDIA AI chips to China using falsified documents and transit routes through Southeast Asia.

  2. [CRIME] 46 sources
    California tech owner arrested for $300M AI chip smuggling scheme to China

    California tech owner Greg Lui was arrested for allegedly smuggling $300 million in restricted Nvidia AI servers to China via Malaysia and Singapore using false documentation.

Sources

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