Federal prosecutors have charged a California man with allegedly smuggling computer servers containing about $300 million worth of Nvidia artificial intelligence chips to China in violation of US export controls. Greg Lui, 38, the owner of privately held Earthmade Computer Inc., was arrested Thursday and faces charges related to an alleged scheme that operated from 2023 to 2024. Prosecutors said Lui worked with unidentified co-conspirators to supply restricted technology to buyers in China without obtaining the required US licences.

According to the US Justice Department, the equipment was initially shipped to Malaysia and Singapore, where the transactions did not require licences for purchases of certain advanced AI chips from US companies. The servers were subsequently sent to their final buyers in China, prosecutors alleged. Authorities said Lui knew that the Nvidia chips inside the servers were subject to US export restrictions and arranged sales despite those controls.

Prosecutors further alleged that false documentation was provided to US manufacturers to misrepresent the ultimate destination of the servers. In one transaction cited in court documents, Lui allegedly obtained 27 servers equipped with Nvidia H100 graphics processing units for approximately $7.6 million. The alleged conspiracy continued until at least mid-August, according to charging papers, and involved efforts to conceal the actual destination of the restricted technology.

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Lui faces one count each of conspiracy to violate US export controls, outbound smuggling and conspiracy to commit money laundering. Prosecutors have asked that he be detained without bail, arguing that there is a serious risk he could flee if released. First Assistant US Attorney Bill Essayli said authorities would pursue cases involving alleged attempts to circumvent export restrictions imposed on advanced computing technology.

The charges were announced jointly by federal prosecutors, the FBI and the Commerce Department’s Bureau of Industry and Security, which administers US export-control programmes. Nvidia said in a statement that its cooperation with law enforcement had contributed to prosecutions and that it would continue working with authorities. The case is the latest federal prosecution involving allegations that advanced Nvidia chips were diverted to China despite US restrictions. If convicted on all charges, Lui could face more than 20 years in prison, according to the Justice Department.

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