US charges tech executive with $300 million AI chip smuggling scheme to China

Federal prosecutors have arrested a Silicon Valley technology executive and charged him with leading a sophisticated scheme to smuggle export-controlled Nvidia AI processors worth over $300 million into China. The scheme allegedly operated from late 2023 through mid-2026, using a network of freight forwarders across Southeast Asia to obscure the final destination of high-performance servers destined for the Chinese mainland.

The Charges#

Greg Lui, 38, the CEO of Earthmade Computer, faces charges of violating US export controls on advanced semiconductors. According to the Department of Justice, Lui orchestrated the illegal diversion of server shipments containing Nvidia's A100 and H100 GPUs—powerful processors designed for data-intensive computing and machine learning applications. The federal government maintains strict export restrictions on these chips, viewing their concentration in foreign hands as a potential threat to American technological and military advantage.

How the Scheme Allegedly Worked#

Rather than shipping servers directly to China—which would trigger immediate customs scrutiny—Lui allegedly routed shipments through Malaysia and Singapore with fraudulent paperwork claiming legitimate buyers in those countries. In one documented transaction, Lui submitted a purchase order for 27 servers valued at approximately $7.6 million, which he falsely declared as Malaysian-bound. According to the FBI's investigation, a co-conspirator then informed a Malaysian official that all 27 units had actually been redirected to China.

In another case, a shipment of 92 servers traveled through Singapore, Malaysia, and Hong Kong before reaching its true destination: a Chinese artificial intelligence firm based in Hangzhou, the country's emerging hub for AI development.

The most brazen operation involved 100 servers, each equipped with H100 GPUs valued at more than $22 million. To execute this smuggle, Lui allegedly created fraudulent buyer documentation under the alias "Jackie Lui," using what investigators describe as purchased identifying documents from a third party.

Evidence and Investigation#

The DOJ's case rests on emails and banking records that document the full scope of the conspiracy. These communications reveal how participants coordinated with freight-forwarding networks across Southeast Asia and discussed specific shipments, quantities, and false destinations. The paper trail—combined with the testimony of co-conspirators and records from Malaysia—provides federal prosecutors with detailed documentation of each major transaction.