The US has arrested Greg Lui, CEO of Earthmade Computer, accused of smuggling high-end computer servers containing export-controlled Nvidia chips into China using false paperwork masking shipments worth more than $300 million.
The DOJ alleged Lui conspired with freight-forwarding firms in Malaysia and Singapore to illegally divert chip shipments into China, including Nvidia A100 and H100 GPUs. The scheme allegedly ran from October 2023 to August 2026.
Key evidence includes a 2024 email discussing 70 servers with export-restricted GPUs fraudulently claimed as destined for Malaysia. Lui allegedly submitted a purchase order for 27 servers for approximately $7,614,000; a co-conspirator told a Malaysian official all 27 were shipped to China.
In 2024, Lui’s firm allegedly received more than $176 million from the scheme. Lui faces up to 20 years for conspiracy and money laundering, and up to 10 years for smuggling.
Nvidia said “less than one half of one percent” of its products have been diverted to China. Bloomberg reported officials suspect hundreds of thousands of AI chips are exchanged in a shadow trade. US officials want Nvidia to tighten protocols and flag suspicious shipments to Thailand, Malaysia, and Singapore.
Nvidia continues working with Megaspeed despite US government requests for urgent checks. Huang’s influence over Trump has led to relaxed export controls. Trump administration officials have adopted “super intelligence” (SI) terminology in DOJ press releases.