U.S. federal authorities arrest California man for alleged smuggling of $300M in Nvidia servers to China, evading export controls.

US authorities have arrested a California technology company owner accused of smuggling more than $300 million worth of restricted artificial intelligence servers to China by routing them through Malaysia and Singapore to evade US export controls.

Greg Lui, 38, also known as Yiu Kong Lui, of San Gabriel, was arrested on Thursday and charged with conspiracy to violate US export controls, outbound smuggling, and conspiracy to commit money laundering, according to the US Justice Department. Federal prosecutors allege that Lui employed false documents and complex transshipment schemes designed to conceal China as the true destination for the restricted technology.

John A. Eisenberg, assistant attorney general for national security, characterized the case as part of wider enforcement efforts amid intensifying competition in the AI technology race. "These chips are the product of American ingenuity," Eisenberg said. "The National Security Division will continue to enforce our export-control laws to protect that advantage."