CEO Arrested for Smuggling AI Chips to China
Federal agents have taken into custody a technology CEO from California, who is accused of illegally exporting over $300 million worth of restricted artificial intelligence (AI) chips to China.
Greg Lui, also known as Yiu Kong Lui, 38 years old and residing in San Gabriel, is facing several federal charges for allegedly shipping large quantities of U.S.-made AI graphics processors to Beijing, in direct violation of export laws intended to protect national security.
Lui is the founder and CEO of Earthmade Computer, located in San Gabriel.
According to reports, agents tracked Lui as he drove his Tesla Cybertruck from his home to the office in a small industrial area, apprehending him at gunpoint shortly after he arrived for work.
Before his arrest, Lui enjoyed a luxurious lifestyle in a recently renovated 4,300-square-foot house on Walnut Grove Avenue, where he resided with several extended family members.
On Thursday, federal agents conducted a search of his nine-bedroom, seven-bathroom home, which recently received extensive renovations such as new stucco and windows, as well as a repaved driveway. They reportedly documented the space and collected evidence, as noted by the California Post.
At Earthmade Computer(s) Inc., Lui and his associates allegedly took advantage of the company to illegally export sensitive AI technology to China, doing so without obtaining necessary licenses from the Department of Commerce from 2023 to 2024.
In order to evade U.S. national security regulations, shipments were rerouted through countries such as Malaysia and Singapore before reaching their final destination in China.
“Lui is charged with one count of conspiracy to violate the Export Control Reform Act and the Export Administration Regulations, one count of outbound smuggling, and one count of conspiracy to commit money laundering,” the indictment states.
“This defendant allegedly used false paperwork and shipments through third countries to smuggle more than $300 million in export-controlled computer servers to China,” said First Assistant United States Attorney Bill Essayli in the indictment. “We will aggressively prosecute those who put our national security at risk for profit.”
Lui and his co-conspirators reportedly submitted fraudulent paperwork to suppliers—including Nvidia Corp., an AI chipmaker based in Santa Clara—claiming that the advanced technology was destined for countries without export license restrictions.
Federal officials highlighted that such sensitive AI technology could significantly enhance China’s military capabilities.
Between January and October 2024, Earthmade reportedly received over $176 million from two Malaysian shipping companies involved in the smuggling operation. As part of these activities, Lui placed a $7.61 million order with a U.S. manufacturer for 27 servers featuring export-controlled GPUs.
He coordinated the shipment of this hardware from Los Angeles to Kuala Lumpur, fully aware that direct shipment to China required a license. By March 2024, an email from a co-conspirator to a Malaysian government official confirmed that the servers had, in fact, been sent to a buyer in China.
Lui now faces charges of conspiracy to violate the Export Control Reform Act, smuggling, and conspiracy to commit money laundering. If found guilty on all charges, he could face up to 50 years in federal prison. He is scheduled to appear in court on Friday in U.S. District Court in downtown Los Angeles.
