A California technology CEO was arrested by federal authorities for allegedly concealing $300 million in AI chip exports to China, violating export control regulations.

Federal agents arrested California tech CEO Greg Lui, 38, also known as "Yiu Kong Lui" of San Gabriel, on charges of smuggling more than $300 million in restricted AI chips to China in violation of U.S. export controls. The FBI and Department of Commerce arrested Lui at the headquarters of Earthmade Computers, a company he founded and allegedly used to conduct the scheme.

Prosecutors allege that from 2023 to 2024, Lui and co-conspirators purchased advanced AI graphics processors made by Nvidia and shipped them through countries including Malaysia and Singapore—where licenses are not required—before illegally re-exporting them to China. The high-end computer servers containing these processors could significantly contribute to Chinese military capabilities, according to federal regulations.

To execute the scheme, Lui and his conspirators used falsified documents to misrepresent the export destinations to suppliers such as Nvidia. From January to October 2024 alone, Earthmade received more than $176 million from Malaysia-based shipment companies as part of the arrangement. In one instance documented by prosecutors, Lui purchased 27 servers for approximately $7.6 million in January 2024 and shipped them from Los Angeles to Kuala Lumpur; two months later, a conspirator confirmed via email that the servers had been transshipped to China.

Evidence suggests Lui knew the transactions were illegal. In a January 2024 email to a conspirator discussing the purchase of 70 servers, Lui specifically noted the laws prohibiting such sales. Lui used accounts at JP Morgan Chase and Bank of America to orchestrate financial transfers related to the scheme.

Lui faces federal charges for conspiracy to violate the Export Control Reform Act, smuggling, and conspiracy to commit money laundering. If convicted, he faces up to 50 years in prison. Before his arrest, Lui maintained a luxury lifestyle, recently completing extensive renovations to his 4,300-square-foot San Gabriel mansion. Prior to founding Earthmade in 2021, Lui worked in database colocation services in Denver. Earlier in his career, he co-founded Duo-Pot, a Sichuan Chinese restaurant in Arcadia that closed in 2021.

The investigation involves the U.S. Department of Commerce, the Defense Criminal Investigative Service, and the FBI.