Californian accused of shipping $300M worth of Nvidia chips to China without Uncle Sam’s approval

A California business owner was arrested on Thursday after being charged with allegedly smuggling Nvidia hardware to China without the proper export licenses. Keeping the highest-end GPUs out of Chinese hands has been a priority for the US government. Greg Lui, 38, allegedly tried to export around $300 million worth of Nvidia kit - typically used for artificial intelligence (AI) development - via US-based freight businesses and Malaysian transshipment companies. Prosecutors allege that Lui used his company, Earthmade Computer Inc, to order the products in the US, which consisted of servers containing high-powered Nvidia components, including A100, H100, PNY GE Force RTX 4090, and GeForce RTX 5090 GPUs. Lui would then send them to Malaysia and Singapore, two countries that do not require licenses from the Commerce Department, and companies there would forward them to China in an effort to circumvent US export controls. His alleged crimes violate regulations prohibiting the sale of economically sensitive equipment to adversarial countries, such as China, in the interests of national security. In lay terms, the US doesn’t want its own tech companies’ high-end hardware being used to accelerate China’s push for dominance in the race for the world’s most capable AI. Or, as it’s referred to in the US nowadays, “super intelligence (SI).” “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.” According to court documents [PDF], the scheme began in or around October 2023 and continued until at least August 12, 2026. Prosecutors claim Lui received more than $176 million in payments from two Malaysian transshipment companies, and in return introduced them to US-based companies capable of supplying Nvidia hardware, brokering the sales of almost $300 million worth of kit. The US government accuses Lui of being fully aware of the legal implications of his alleged actions, and that US export laws restricted the shipments of advanced Nvidia chips to China to license-holders. Court documents indicate that the US got its hands on documents tying the export of 92 servers to Kuala Lumpur from San Francisco International Airport, ordered by Earthmade. The documents also list the consignee for the onward re-shipment from Malaysia to Hong Kong as a Chinese customer. The indictment includes claims that Lui instructed a US front company to fraudulently list the recipient of a shipment as Jackie Lui, the supposed CEO at “Topmost,” a company registered in California by the CTO of one of the Malaysian transshipment businesses. Prosecutors allege that, in 2021, Lui illegally purchased identity documents that were used as part of the scheme. Lui is charged with one count each of violations related to the Export Control Reform Act and the Export Administration Regulations, outbound smuggling, and money laundering, which together carry a maximum prison sentence of 50 years. “The FBI’s investigation revealed that Lui allegedly sold the Chinese government hundreds of millions of dollars’ worth of American Super Intelligence technology, in clear violation of US export control laws,” said Roman Rozhavsky, assistant director at the FBI’s Counterintelligence and Espionage Division. “Controlling the export of advanced SI technology is critical to safeguarding our national security and defending the homeland, and the FBI will keep fighting for America’s businesses and economic security. We’re grateful to our partners across the US government and private sector for their assistance, and we’ll continue holding accountable anyone who violates US export laws to enrich themselves and help our adversaries.” The Register contacted Earthmade and Nvidia for comment. ®