A California technology entrepreneur accused of helping move more than $300 million worth of export-controlled computer servers to China is at the center of one of the largest recent U.S. cases involving advanced artificial intelligence hardware and export restrictions. Federal authorities arrested Greg Lui, 38, on Thursday, alleging he orchestrated a scheme to send high-end computer servers containing advanced U.S.-made graphics processing units, or GPUs, to China through third countries in violation of federal export-control laws. Lui, also known as Yiu Kong Lui, faces charges of conspiracy to violate export-control regulations, smuggling, and conspiracy to commit money laundering.
If convicted on all counts, he could face up to 50 years in prison. According to federal prosecutors, Lui owns Earthmade Computer Inc., a technology company based in the City of Industry in Los Angeles County. Public business profiles show Earthmade was founded in 2021 and operated in areas including server procurement, technology infrastructure, and data-center services.
According to public profiles, Lui's technology career began with work in hosting and colocation services before he launched Earthmade Computer. The company marketed itself as a provider of server procurement, infrastructure, and data-center solutions, placing it in the fast-growing market for advanced computing hardware during the boom in artificial intelligence investment. Before entering the technology sector, Lui was involved in the restaurant business.
Public profiles indicate he helped launch a San Gabriel Valley restaurant specializing in Sichuan cuisine before later transitioning into technology and data-center operations. Authorities allege Earthmade became the vehicle through which export-controlled AI hardware was purchased and routed overseas. The Justice Department said Earthmade received more than $176 million from two Malaysia-based shipping companies between January and October 2024 as part of the alleged operation.
Newsweek has reached out to Earthmade via email for comment after regular business hours. According to the indictment, Lui and his co-conspirators acquired export-controlled computer servers containing advanced GPUs commonly used in artificial intelligence applications. Prosecutors say the operation relied on a practice known as transshipment, in which goods are routed through intermediate countries before reaching their final destination.
U.S. authorities have increasingly focused on such arrangements as companies and individuals seek to evade export restrictions on advanced chips, servers and other technologies subject to national-security controls. The government alleges the servers could not legally be exported directly to China without special licenses from the Commerce Department. Instead, prosecutors say the equipment was shipped to countries including Malaysia and Singapore, where export restrictions were less stringent.
Extract — continue reading at the source.
