US arrests tech CEO accused of smuggling $300M in Nvidia chips into China
Nvidia’s chip-smuggling problem won’t go away as arrests continue.
The US has arrested Greg Lui, the 38-year-old CEO of Earthmade Computer, for allegedly smuggling high-value computer servers containing Nvidia chips into China, according to the Department of Justice's press release. The indictment alleges that Lui utilized false paperwork to disguise shipments valued at over $300 million, which he knew were destined for China.
The FBI claims Lui conspired with freight-forwarding firms in South Asian countries like Malaysia and Singapore to illegally divert Nvidia's A100 GPUs and H100 GPUs, which, while not the most advanced chips, are capable of processing large data sets and training large language models. The US expresses concern that China could gain access to these chips, potentially advancing its AI capabilities and military strength.
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