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US authorities have arrested a California man accused of smuggling more than $300mn 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 say he used his company, Earthmade Computer, to ship the servers without the export licences the US Commerce Department requires. The alleged scheme ran from 2023 to 2024.
Through Malaysia and Singapore
The servers allegedly went first to Malaysia and Singapore, where no licence is needed, before being sent on to China. Prosecutors say Lui used false paperwork to hide their true destination.
They contained US-made graphics processors used to build AI. The Justice Department used the term super intelligence, the Trump administration’s new name for AI.
“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 only an allegation, and he is presumed innocent.
A wider crackdown
The US has long blocked China from buying top-end AI chips, such as those made by Nvidia. The Justice Department did not name the maker of the chips in this case.
Smuggling has become a major worry for chipmakers and governments. Taiwan has indicted an Nvidia manager over chips shipped to China.
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