Sunday, October 4, 2026 Independent US tech newsroom
LexxWire US Tech & AI News

California Man Charged in $300M AI Server Smuggling Scheme to China

Greg Lui, 38, owner of Earthmade Computer Inc. near Los Angeles, was arrested October 1 on a three-count federal indictment alleging he funneled more than $300 million in export-controlled AI servers to China via Malaysia and Singapore using false paperwork. If convicted, he faces up to 50 years in prison. Sources: U.S. Department of Justice via Digital Watch Observatory, Economic Times (AFP), Lokmat Times (IANS).

October 4, 2026 · 1 min · 65 words · LexxWire Desk
A server rack with Nvidia GPU hardware behind a US flag and a blurred China flag, illustrating the alleged $300M Nvidia AI chip smuggling scheme

California Man Charged in $300M Nvidia Chip Smuggling Scheme to China

Federal agents have arrested a California businessman accused of turning his small server company into a pipeline that funneled more than $300 million in Nvidia AI hardware to China. It is the largest alleged chip-smuggling case the Justice Department has brought in its three-year fight to keep advanced American GPUs out of Chinese hands. Greg Lui, 38, also known as Yiu Kong Lui, was taken into custody on Thursday, Oct. 1. He owns Earthmade Computer Inc., a privately held server reseller based in City of Industry, California. The indictment charges him with conspiracy to violate US export controls, outbound smuggling, and conspiracy to commit money laundering. A conviction on all counts carries a maximum of 50 years in prison. ...

October 3, 2026 · 6 min · 1084 words ·