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California Tech Executive Charged with Smuggling $300 Million in AI Servers to China

California Tech Executive Charged with Smuggling $300 Million in AI Servers to China

First seen 4 Oct 2026, 04:08 UTC • •
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ThreatCluster AI
ThreatCluster •October 5, 2026 at 04:02 UTC
  • •Greg Lui was arrested for smuggling over $300 million in AI technology to China.
  • •He allegedly used false documentation and third-country shipments to evade U.S. export controls.
  • •The servers contained Nvidia H100 chips, restricted due to their military applications.

Greg Lui, the owner of Earthmade Computer Inc., was arrested on October 1, 2026, for allegedly smuggling over $300 million worth of export-controlled computer servers containing U.S.-manufactured GPUs to China. The indictment includes charges of conspiracy to violate U.S. export control laws, outbound smuggling, and money laundering. Lui and his co-conspirators reportedly used false paperwork to ship the servers through Malaysia and Singapore, avoiding the necessary export licenses. The servers contained Nvidia H100 chips, which are subject to strict U.S. export restrictions due to their potential military applications. Prosecutors claim that Lui was aware the final destination was China, despite misrepresenting it in documentation. If convicted, he faces significant prison time, with potential sentences exceeding 20 years. The case highlights ongoing U.S. efforts to prevent advanced technology from bolstering adversarial military capabilities.

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Timeline

2023-01-01
Smuggling activities began
Lui and co-conspirators allegedly started purchasing and smuggling restricted servers from 2023 to 2024.
Visiontimes
2026-09-29
Indictment returned
A federal grand jury returned a three-count indictment against Lui, accusing him of conspiracy and smuggling.
Visiontimes
2026-10-01
Greg Lui arrested
Lui was arrested on charges of smuggling $300 million worth of AI servers to China through false paperwork.
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Common questions

What charges is Greg Lui facing?
Lui faces charges of conspiracy to violate export controls, outbound smuggling, and money laundering.
What technology was involved in the smuggling?
The smuggling involved high-end computer servers containing Nvidia H100 GPUs, which are subject to U.S. export restrictions.
What are the potential penalties for Lui?
If convicted, Lui could face over 20 years in prison, depending on the charges.