California man charged with smuggling $300 million of Nvidia AI servers to China via Malaysia and Singapore
Greg Lui, owner of Earthmade Computer, was arrested on federal charges for allegedly purchasing 27 servers with Nvidia H100 GPUs for about $7.6 million and routing them through Malaysia and Singapore to China between 2023 and 2024 without export licenses. The scheme is valued at more than $300 million and violates the Export Control Reform Act and Export Administration Regulations. Nvidia did not comment on the allegations.
Why it matters
The Department of Justice case highlights enforcement of U.S. export controls on advanced AI hardware, which could tighten licensing requirements for Nvidia and its customers. Investors may see increased regulatory scrutiny and potential supply‑chain disruptions for Nvidia's high‑end GPU products.
Key facts
- 1Greg Lui, 38, of San Gabriel, California, was arrested on federal export‑control charges. benzinga.com
- 2Lui allegedly purchased 27 servers containing Nvidia H100 GPUs for approximately $7.6 million under a single purchase order. benzinga.com
- 3The servers were allegedly routed through Malaysia and Singapore before being re‑exported to China. benzinga.com
- 4The total value of the smuggled equipment is reported as more than $300 million. benzinga.com
- 5The alleged shipments occurred between 2023 and 2024 without required U.S. Department of Commerce licenses. benzinga.com
- 6Nvidia's stock closed at $230.86 on Thursday, up 0.27% in after‑hours trading. benzinga.com
Summary written by AlphAI from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.