U.S. authorities have apprehended Greg Lui, the head of Earthmade Computer Inc. in California, on charges related to the illicit export of GPU servers valued at over $300 million to China. The arrest on October 1, 2026, highlights a complex scheme involving falsified customer documentation and indirect shipping routes aimed at obscuring the ultimate destination of these high-tech components.
Details of the Allegations
Lui, also known as Yiu Kong Lui, is a 38-year-old resident of San Gabriel. He faces arraignment in a federal court in Los Angeles on October 2. The indictment, issued by a federal grand jury on September 29, accuses him of multiple offenses including conspiracy to breach the Export Control Reform Act, outbound smuggling, and money laundering. These charges stem from allegations that Lui unlawfully provided advanced computing equipment to Chinese clients without the necessary permissions from the Commerce Department.
The Smuggling Operation
Between 2023 and 2024, Lui and his associates allegedly operated through Earthmade, located in the City of Industry, to acquire sophisticated servers equipped with U.S.-manufactured graphics processing units. These GPUs are characterized by the Justice Department as essential for “Super Intelligence” applications. The operation reportedly masked China as the destination, instead listing other countries as the recipients, with shipments routed through Malaysia and Singapore before reaching China.
The crux of the alleged misconduct is not merely the use of foreign transit points but the intentional concealment of China’s involvement and the lack of appropriate export licenses. The paperwork purportedly featured false customer identities and destinations that did not necessitate such licenses.
Investigation and Implications
Assistant Attorney General John A. Eisenberg noted that the operation included the use of decoy servers to mislead inspectors, though specifics on the decoys or the GPU models involved were not disclosed. Investigations reveal that Earthmade received over $176 million from Malaysian shipping firms in 2024, which aligns with payments linked to the alleged activities but not the full server value.
One notable transaction involved a January 2024 communication where Lui discussed a Malaysian company’s request for 70 servers with restricted GPUs. Documentation acknowledged U.S. export restrictions. Subsequently, 27 servers valued at $7.614 million were ordered and shipped from Los Angeles to Kuala Lumpur, with paperwork explicitly stating the prohibition on selling them to China without a license. By March, communications confirmed their onward shipment to a Chinese buyer.
The advanced nature of these GPUs raises national security concerns due to their potential military applications. This case has parallels to the conviction of ex-Google engineer Linwei Ding for AI trade secret theft, underscoring the sensitivity of tech exports to China.
The investigation is being conducted by the Commerce Department’s export enforcement office, the Defense Criminal Investigative Service, and the FBI. Each count of conspiracy carries a potential 20-year prison sentence, while smuggling charges can lead to 10 years of incarceration.
