A California technology executive is facing federal charges after prosecutors accused him of illegally exporting more than $300 million worth of restricted artificial intelligence hardware to China.
Greg Lui, 38, of San Gabriel, California, was arrested following a federal indictment that alleges he operated a large-scale scheme to bypass U.S. export controls on advanced computing technology. Prosecutors say Lui used his company, Earthmade Computer Inc., to obtain high-end computer servers containing export-controlled graphics processing units and send them to China through intermediary countries.
The case highlights growing concerns in Washington over the transfer of advanced AI-related technology to China as competition between the two countries intensifies in areas such as artificial intelligence, supercomputing, and national security.
According to the indictment, Lui and his alleged co-conspirators operated the scheme from 2023 through 2024. Federal authorities claim they routed shipments through countries including Malaysia and Singapore, locations where export licenses for certain products were not required, before the equipment was ultimately redirected to China. Prosecutors allege that false paperwork was used to conceal the true destination of the technology.
The servers involved in the case reportedly contained advanced graphics processing units, commonly known as GPUs, that are widely used in artificial intelligence systems and high-performance computing. U.S. officials argue that such technology can contribute to military capabilities and therefore falls under strict export regulations.
Federal prosecutors charged Lui with conspiracy to violate export control laws, outbound smuggling, and conspiracy to commit money laundering. If convicted on all counts, he could face a combined maximum sentence of 50 years in federal prison. Authorities stated that the charges remain allegations and that Lui is presumed innocent unless proven guilty in court.
Investigators say Earthmade Computer received more than $176 million from Malaysia-based shipping companies connected to the transactions. Court documents allege that the company acted as a broker between foreign buyers and U.S. manufacturers while misrepresenting the identity of the end users.
One example cited in the indictment involves an order for 27 servers valued at more than $7.6 million. Prosecutors claim the equipment was officially documented as being shipped to Malaysia, but later communications indicated the servers were forwarded to buyers in China. Investigators also pointed to additional shipments involving larger quantities of export-controlled hardware.
Federal agencies involved in the investigation include the FBI, the Department of Commerce’s Bureau of Industry and Security, and the Defense Criminal Investigative Service. Officials said the case reflects ongoing efforts to prevent sensitive American technology from reaching foreign adversaries through illegal export channels.
The allegations come amid broader scrutiny of attempts to bypass U.S. restrictions on advanced semiconductor and AI technologies. American policymakers have increasingly focused on preventing the transfer of high-performance chips and computing systems that could enhance China’s artificial intelligence and defense capabilities.
Demand for advanced AI hardware has surged in recent years as businesses, governments, and research organizations invest heavily in artificial intelligence development. Powerful GPUs are considered essential for training large AI models and operating advanced computing systems.
Authorities allege that Lui knowingly participated in efforts to evade export restrictions designed to protect national security interests. Prosecutors argue that the scheme relied on intermediary countries, freight forwarding companies, and misleading documentation to move restricted technology outside the United States.
The AI Technology Smuggling case is expected to receive close attention because it involves advanced computing hardware, international trade regulations, and national security concerns. As court proceedings move forward, investigators and prosecutors will seek to determine the full scope of the alleged operation and whether additional individuals were involved.
