US Charges California Man with Smuggling $300mn of AI Servers to China (explore this topic)
US authorities have arrested a California man accused of smuggling more than $300 million of computer servers packed with AI chips to China, the Justice Department said on Thursday.
Greg Lui, 38, of San Gabriel, also known as Yiu Kong Lui, was arrested on Wednesday, prosecutors said. Reuters also reported the case, in a story carried by The Guardian.
Prosecutors allege Lui used his company, Earthmade Computer, to ship the servers without the export licenses the US Commerce Department requires. The alleged scheme ran from 2023 to 2024.
Through Malaysia and Singapore, the servers allegedly traveled first to Malaysia and Singapore, where no license is needed, before being sent on to China. Prosecutors claim Lui used false paperwork to conceal their final destination.
They contained US-made graphics processors used to build AI, referred to by the Justice Department as "super intelligence," a term popularized by the Trump administration.
"We will aggressively prosecute those who put our national security at risk for profit," said Bill Essayli, the US attorney for the Central District of California.
Lui faces three charges, including smuggling and money laundering conspiracy. If convicted, he could face up to 50 years in prison. An indictment is merely an allegation, and he is presumed innocent.
This incident highlights a wider crackdown on smuggling as chipmakers and governments strive to prevent advanced AI technology from falling into Chinese hands. Taiwan, for instance, has recently indicted an Nvidia manager over chips shipped to China.