Earthmade Computers CEO Greg Lui is arrested for allegedly smuggling AI accelerator chips to China in violation of US export controls.

Federal agents arrested Earthmade Computers founder and CEO Greg Lui over an alleged scheme to export more than $300 million in restricted AI servers to China. Lui, 38, also known as Yiu Kong Lui, was arrested at the company's City of Industry headquarters and faces charges of conspiracy to violate the Export Control Reform Act, smuggling, and conspiracy to commit money laundering. If convicted, he could face up to 50 years in prison.

According to federal prosecutors, Lui and co-conspirators bought and shipped export-controlled technology to China during 2023 and 2024 without the required Department of Commerce licenses. The servers contained Nvidia processors. Prosecutors allege the defendants used false paperwork to identify destinations that did not require licenses, routing shipments through Malaysia and Singapore before sending them to China.

Between January and October 2024, Earthmade received more than $176 million from two Malaysia-based shipping companies in connection with the alleged scheme, according to court papers.

In a January 2024 email, prosecutors say Lui discussed a Malaysian company's request for 70 servers and acknowledged restrictions on selling the technology. Later that month, he purchased 27 servers for approximately $7.6 million and shipped them from Los Angeles to Kuala Lumpur. Two months later, a co-conspirator notified a Malaysian official by email that the servers had been sent onward to China.

First Assistant US Attorney Bill Essayli stated the alleged exports posed national-security risks by potentially strengthening an adversary's military capabilities. The Department of Commerce, Defense Criminal Investigative Service, and FBI are investigating the case.