California Man Charged in Alleged $300M AI Server Smuggling Scheme to China

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Federal prosecutors have charged a California technology executive with allegedly helping route more than $300 million in export-controlled computer servers to China through third-party countries.

Greg Lui, 38, owner of Earthmade Computer Inc., faces federal charges for allegedly shipping export-controlled computer servers to China without required Commerce Department licenses between 2023 and 2024, according to the Justice Department.

Prosecutors say Lui and unnamed co-conspirators bought servers containing high-end GPUs, then routed them through Malaysia and Singapore, countries that don’t require export licenses for such purchases, before illegally re-exporting them to China.

They allegedly gave US manufacturers false documentation claiming the equipment was destined for permissible end users.

“This defendant allegedly used false paperwork and shipments through third countries...

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