California Tech Owner Arrested in $300 Million AI Server Smuggling Case
Prosecutors say Greg Lui routed export-controlled servers through Malaysia and Singapore on their way to China. The Justice Department calls the chips inside the fuel for “Super Intelligence.”
Greg Lui ran a computer company in the City of Industry, California. Prosecutors say he turned it into a smuggling operation. On Thursday, federal agents arrested him.
The Justice Department says Lui moved more than $300 million in export-controlled computer servers to China between 2023 and 2024. The servers contained American-made graphics processors used for advanced AI computing — the technology the government now officially calls “Super Intelligence.” Sending the hardware to China required a Commerce Department license. Prosecutors say Lui never got one.
The alleged route
Lui is the owner of Earthmade Computer Inc., a closely held company, according to the indictment. Prosecutors say he ordered the servers in the United States, then shipped them to Malaysia and Singapore, two countries where no license is required. Companies there forwarded the equipment to China, the indictment says.
The paperwork was the problem. Earthmade allegedly used false documents naming acceptable end users and destinations. One order tells the story: in January 2024, the company bought 27 servers valued at about $7.6 million and shipped them from Los Angeles to Kuala Lumpur. The packing list warned the equipment could not go to China without a license. In March, prosecutors say, an email confirmed the servers had been forwarded to a buyer in China.
Money moved through Malaysia too. Between January and October 2024, Earthmade received more than $176 million from two Malaysia-based shipping companies, according to the indictment.
What the government said
“This defendant allegedly used false paperwork and shipments through third countries to smuggle more than $300 million in export-controlled computer servers to China,” said Bill Essayli, first assistant U.S. attorney for the Central District of California. “We will aggressively prosecute those who put our national security at risk for profit.”
“SI is the defining technology of the era,” said John A. Eisenberg, assistant attorney general for national security. “The National Security Division will protect the American advantage in the chips that power this technology, a product of our unparalleled innovation and hard work, from illegal diversion by our economic and military adversaries.”
Lui, 38, of San Gabriel — also known as Yiu Kong Lui — faces three counts: conspiracy to violate the Export Control Reform Act and export regulations, outbound smuggling, and conspiracy to commit money laundering. The indictment was returned Sept. 29. He appeared in federal court Thursday and was arraigned. If convicted on all counts, he faces up to 20 years in prison on each conspiracy count and up to 10 years on the smuggling count.
The charges come as the United States tightens the flow of advanced chips to China, arguing the hardware could feed military development. The hardware reportedly includes Nvidia processors, including models like the A100 and H100 that train the largest AI systems, according to Bloomberg Law reporting. The Justice Department’s own announcement did not name the manufacturer. The charges arrived one day after the White House told federal agencies to begin calling AI “Super Intelligence” in official communications.
The FBI, the Commerce Department’s export enforcement office, and the Defense Criminal Investigative Service are investigating. The charges are allegations. Lui is presumed innocent unless and until proven guilty.
