California Tech Company Owner Arrested for Smuggling GPUs

Greg Lui, the 38-year-old owner of Earthmade Computer Inc. , was arrested on federal charges for allegedly smuggling more than $300 million worth of export-controlled high-end computer servers to China. The servers, which contained U.

S. -manufactured graphics processing units (GPUs) commonly used for Super Intelligence (SI) applications, were allegedly shipped from the United States to China through intermediary countries to circumvent export controls.

According to the U. S. Department of Justice, Lui, also known as 'Yiu Kong Lui,' was charged in a three-count federal indictment.

The charges include conspiracy to violate the Export Control Reform Act, outbound smuggling, and conspiracy to commit money laundering. The indictment alleges that from 2023 to 2024, Lui and his co-conspirators used Earthmade Computer Inc. , based in the City of Industry, California, to purchase and export these controlled items without the necessary licenses from the U.

S. Department of Commerce.

Alleged Smuggling Scheme

Prosecutors allege that Lui and his associates shipped the servers to countries like Malaysia and Singapore, where export licenses were not required, before re-exporting them to China. This was done despite Lui's knowledge that the actual end users were in China. To facilitate this scheme, Lui and his co-conspirators allegedly provided false documentation to U.

S. -based manufacturers, misrepresenting the end users and destinations of the servers.

The indictment further details that Earthmade received over $176 million from two Malaysia-based shipment companies between January 2024 and October 2024 as part of this operation. In one instance, Lui reportedly emailed a co-conspirator in January 2024 about a Malaysian company's interest in purchasing 70 servers with export-restricted GPUs, leading to a purchase order for 27 servers valued at approximately $7,614,000.

National Security Concerns

The case has raised significant national security concerns, as highlighted by various U. S. officials.

Assistant Attorney General for National Security John A. Eisenberg emphasized the importance of protecting American technological advantages from illegal diversion. First Assistant U.

S. Attorney Bill Essayli for the Central District of California stated that the defendant allegedly used false paperwork and third-country shipments to smuggle the servers to China, putting U. S.

national security at risk for profit.

The FBI's investigation revealed that Lui allegedly sold hundreds of millions of dollars' worth of American SI technology to the Chinese government, violating U.S. export control laws. FBI Assistant Director Roman Rozhavsky underscored the critical nature of controlling the export of advanced SI technology to safeguard national security.

Greg Lui is expected to make his initial court appearance and be arraigned on the charges. The case continues to be a priority for U.S. authorities as they seek to enforce export control laws and protect national security interests.