Who Is Greg Lui? California CEO Charged in $300M AI Server Smuggling Case
Federal authorities have arrested a California technology entrepreneur accused of orchestrating one of the largest recent U.S. export-control cases involving advanced artificial intelligence hardware, alleging he helped move more than $300 million worth of high-end computer servers to China.
Greg Lui, 38, also known as Yiu Kong Lui, was taken into custody Thursday. Prosecutors say he ran a scheme to send servers containing advanced U.S.-made graphics processing units, or GPUs, to China through third countries in violation of federal export laws.
Lui owns Earthmade Computer Inc., a technology company based in the City of Industry in Los Angeles County, according to federal prosecutors. He 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.
Court records identify Lui as a San Gabriel resident. Public business profiles show Earthmade was founded in 2021 and operated in server procurement, technology infrastructure and data-center services.
Before moving into technology, Lui was involved in the restaurant business. Public profiles indicate he helped launch a San Gabriel Valley restaurant specializing in Sichuan cuisine before shifting into technology and data-center operations. His technology career began with hosting and colocation services before he founded Earthmade, which marketed itself as a provider of server procurement, infrastructure and data-center solutions.
Authorities allege Earthmade became the vehicle for purchasing export-controlled AI hardware and routing it overseas. The Justice Department said the company received more than $176 million from two Malaysia-based shipping companies between January and October 2024 as part of the alleged operation.
According to the indictment, Lui and co-conspirators acquired export-controlled servers containing advanced GPUs commonly used in artificial intelligence applications. Prosecutors say the operation relied on transshipment—routing goods through intermediate countries before they reach their final destination.
U.S. authorities have increasingly focused on such arrangements as companies and individuals seek to evade 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. From there, the servers were allegedly forwarded to buyers in China. Investigators also accuse Lui and others of giving U.S. manufacturers false documentation that concealed the equipment's true destination.
One example cited in court filings involves a January 2024 purchase of 27 servers worth roughly $7.6 million, shipped from Los Angeles to Kuala Lumpur. Prosecutors say a co-conspirator later acknowledged that the servers had been forwarded to a China-based buyer. The government alleges the broader operation moved more than $300 million worth of restricted technology.
The charges come as the United States continues tightening restrictions on advanced computer chips and AI-related hardware destined for China. Washington has argued that the most sophisticated semiconductors and computing systems can be used for military, intelligence and surveillance purposes, making them a national-security concern.
According to prosecutors, the servers involved in the case contained GPUs commonly used in advanced artificial intelligence systems, a category the Trump administration has referred to as "Super Intelligence." Assistant Attorney General John Eisenberg described AI chips as one of the country's most strategically important technologies.
Federal officials allege Lui knowingly circumvented export rules designed to prevent advanced American technology from reaching prohibited users. The FBI, the Commerce Department's Bureau of Industry and Security, and the Defense Criminal Investigative Service are investigating.
The case is likely to sharpen scrutiny of transshipment networks and compliance practices across the AI hardware supply chain, as U.S. officials seek to close gaps that allow restricted technology to reach China through third countries. It also underscores the legal exposure facing companies that procure and move high-end computing equipment amid rapid growth in AI investment.
Lui has been charged but not convicted. The allegations are contained in a federal indictment, and he is presumed innocent unless proven guilty in court. The federal court docket did not identify legal counsel for Lui, according to Bloomberg. Newsweek has reached out to Earthmade via email for comment after regular business hours.