U.S. $300 Million AI Operation: Company Owner Arrested

In a federal investigation that has put a spotlight on technology exports to China in the United States, a notable operation was carried out. In California, technology company owner Greg Lui was arrested on allegations that he shipped export‑controlled high‑performance computer servers to China via third countries. It is said that the total value of the technology products at the center of the investigation exceeds $300 million.

Claim of Shipments Exceeding $300 Million

According to a statement from the U.S. Department of Justice, 38‑year‑old Greg Lui is the owner of Earthmade Computer Inc., a company based in City of Industry.

Federal prosecutors allege that Lui and the people he worked with purchased export‑controlled high‑performance computer servers from U.S. manufacturers between 2023 and 2024.

It was reported that the total value of the technology products alleged to have been shipped to China in the course of the investigation exceeds $300 million.

Advanced Chips Used in Artificial‑Intelligence Applications

According to the indictment, the servers in question contained advanced GPUs that can be used in artificial‑intelligence and high‑performance computing applications.

Reports about the case noted that the products included Nvidia A100 and H100 GPUs. Because of the controls the United States imposes on the export of advanced computer technologies to China, some items require a federal license before they can be shipped.

Allegation that Malaysia and Singapore were shown instead of China.

One of the prosecutor’s most striking allegations was the route the shipments followed.

According to federal officials, the products were shipped through Malaysia and Singapore instead of being sent directly to China. The indictment alleges that the documents presented to U.S. manufacturers concealed the products’ true end user and final destination.

The prosecutor’s office claims that using third countries is part of a plan to circumvent the United States’ export controls on China.

27 Servers for 7,6 Million Dollars

One of the transactions in the investigation file stretches back to the beginning of 2024.

According to the indictment, Lui purchased 27 servers worth approximately 7,6 million dollars from an American manufacturer. The servers were shipped from Los Angeles to Kuala Lumpur, the capital of Malaysia.

U.S. officials claim that these servers were later delivered to a buyer in China.

Overpayment of 176 Million Dollars to Company Accounts

The financial scale of the investigation also drew attention.

According to the U.S. Department of Justice, Earthmade Computer received more than $176 million from two Malaysia‑based shipping companies between January 2024 and October 2024.

The prosecutor’s office says it knows that export licenses were required to ship the products to China, yet it alleges the shipments were carried out through other countries.

Facing Three Separate Federal Charges

On September 29, a federal grand jury prepared an indictment against Lui, who was arrested.

Greg Lui faces charges of conspiring to violate export control regulations, smuggling goods out of the United States, and laundering money.

If the charges are proven in court, Lui could face serious prison sentences. However, the allegations in the indictment have not yet been adjudicated, and Lui is said to benefit from a presumption of innocence until a court decision is made.

Investigation is being carried out by the FBI, the Bureau of Industry and Security under the U.S. Department of Commerce, and the Defense Criminal Investigative Service.