Greg Lui Arrested Over Alleged $300 Million Nvidia Chip Smuggling to China

What changed

US authorities arrested Greg Lui, CEO of Earthmade Computer, over an alleged scheme to divert more than $300 million in export-controlled Nvidia A100 and H100 servers to China. The alleged operation ran from October 2023 through August 2026, using false destination documents and routes through Malaysia, Singapore and Hong Kong.

Why it matters

This case shows how export controls can be defeated long before a restricted server reaches its final destination. The alleged paperwork trail included a 70-server order, a 92-server shipment and 100 Malaysian-bound servers containing H100 GPUs valued at more than $22 million.

For companies building AI infrastructure, the weak point may not be the chip itself. It may be the chain of buyers, freight forwarders, destination claims and financial records wrapped around it. The indictment alleges that Lui used a false buyer identity, worked with freight-forwarding firms, and received more than $176 million connected to the scheme in 2024.

The hardware involved is not Nvidia’s most advanced. But A100 and H100 GPUs can process large datasets and train large language models, which is why US authorities view large-scale access as a national-security concern. If the charges are proven, Lui faces up to 20 years for conspiracy or money laundering and up to 10 years for smuggling. Until then, the allegations remain unproven, and the case does not establish that Nvidia knew about the alleged diversion.