California CEO charged with smuggling $300 million in Nvidia chips to China

A California tech CEO was arrested and charged with smuggling more than $300 million of export-controlled Nvidia servers to China through Malaysia and Singapore, the Department of Justice announced. Greg Lui, 38, also known as "Yiu Kong Lui," was arrested outside Earthmade Computer's offices in City of Industry, California, and charged under the Export Control Reform Act, outbound smuggling, and money laundering, carrying a maximum of 50 years in prison.theguardian.com+1

The charges matter because keeping the highest-end graphics processing units (GPUs, the chips that power artificial intelligence development) out of Chinese hands has been a priority for the US government. The indictment is the latest in a growing number of AI chip smuggling cases. Unlike earlier cases, this one alleges a California CEO personally orchestrated the diversion of servers through third countries that do not require a Commerce Department export license.

What the charges allege

The 22-page indictment alleges Lui conspired with five unnamed co-conspirators to secure and smuggle export-controlled GPUs from October 2023 to August 2026. Prosecutors say Lui used Earthmade Computer to order servers containing Nvidia A100, H100, PNY GeForce RTX 4090, and GeForce RTX 5090 GPUs from US manufacturers, then shipped them to Malaysia and Singapore before rerouting them to China.uk.pcmag.com

The scheme allegedly began in or around October 2023 and continued until at least August 2026, according to court documents. The US government accuses Lui of being fully aware that US export laws restricted shipments of advanced Nvidia chips to China to licence-holders. Prosecutors allege Lui received more than $176 million in payments from two Malaysian transshipment companies.

Lui allegedly introduced those Malaysian companies to US-based suppliers, brokering sales of almost $300 million worth of hardware. Court documents tie the export of 92 servers from San Francisco International Airport to Kuala Lumpur, ordered by Earthmade, with the consignee for onward re-shipment from Malaysia listed as a Chinese customer. The servers contained GPUs commonly used for what the Trump administration now calls "Super Intelligence."

How the scheme moved chips

The indictment alleges Lui instructed a US front company to fraudulently list the recipient of a shipment as Jackie Lui, the supposed chief executive of "Topmost," a company registered in California by the chief technology officer of one of the Malaysian transshipment businesses. Prosecutors also allege that in 2021, Lui illegally purchased identity documents used as part of the scheme.

Nvidia said the case "shows yet again that smuggling is a losing proposition —legally, economically, and technically" and that its work with law enforcement has led to prosecutions. Government officials and industry critics have questioned gaps in the company's due diligence. Former State Department AI policy head Daniel Remler said he had "never felt like we got a straight answer" about chip shipments to Southeast Asia.

What happens next

If convicted, Lui could face a maximum of 50 years in prison on charges involving money laundering, conspiracy, and smuggling, according to the Justice Department. Earthmade Computer did not immediately respond to a request for comment. The case proceeds in the central district of California under US attorney Bill Essayli.