California executive charged over alleged diversion of Nvidia AI servers to China
US prosecutors have arrested Greg Lui, the owner of a California technology company, over allegations that he helped route more than $300 million in export-controlled Nvidia servers to China through Malaysia and Singapore. Authorities say false documents and complex shipments were used to conceal the equipment’s final destination.
US authorities have arrested a California technology company owner accused of helping send more than US$300 million worth of export-controlled computer servers to China through Malaysia and Singapore. Greg Lui, 38, also known as Yiu Kong Lui, was arrested on Thursday and charged with conspiracy to violate export controls, outbound smuggling and conspiracy to commit money laundering, according to the Justice Department. The charges remain allegations.
Prosecutors say Lui, who owns Earthmade Computer in the City of Industry, bought high-end servers containing US-made Nvidia A100 and H100 graphics processing units. The equipment was allegedly shipped to third countries before being re-exported to China without the required licences. Assistant Attorney General John A.
Eisenberg said the indictment described an alleged effort to evade US export laws through false documents and transshipment arrangements intended to hide China as the true destination. The Chinese purchaser was identified in the indictment as an industrial company based in Hangzhou. One alleged shipment involved 27 Nvidia H100 servers valued at about US$7.6 million.
Prosecutors say the servers left Los Angeles County for Kuala Lumpur in January 2024, and that a Malaysian associate later told a government official they had been sent on to a Chinese buyer. Another shipment of 92 controlled servers travelled from San Francisco to Kuala Lumpur before being sent to Hong Kong. The indictment alleges that Earthmade received more than US$176 million from two Malaysia-based transshipment companies between January and October 2024.
Prosecutors say Lui helped broker almost US$300 million in sales through those companies. The case comes as Washington tightens restrictions on advanced AI technology linked to China. The source material says lawmakers are considering measures to track advanced chips and expand export oversight, while officials are also concerned about Chinese companies remotely accessing restricted Nvidia chips located in Southeast Asian data centres.
If convicted on all charges, Lui faces maximum prison terms of 20 years for conspiracy, 20 years for money laundering and 10 years for outbound smuggling.
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