US man arrested over alleged $300 million scheme to smuggle Nvidia AI servers to China
Amid intensifying competition in the AI technology race, US authorities have arrested a California technology company owner accused of using Malaysia and Singapore as transit points to circumvent US export controls and send more than US$300 million worth of restricted computer servers to China. Greg Lui, 38, also known as Yiu Kong Lui, of San Gabriel, was arrested on Thursday and charged with…
US authorities have arrested a California man in connection with a scheme to smuggle over $300 million worth of Nvidia AI servers to China, according to the US Justice Department. Greg Lui, 38, of San Gabriel, was charged with conspiracy to violate US export controls, outbound smuggling, and money laundering. The indictment alleges Lui attempted to evade US export laws by using false documents and complex transshipment schemes to send the servers to China from Malaysia and Singapore.
The servers contain US-manufactured Nvidia GPUs, including A100 and H100 chips, used for "super intelligence" applications that could benefit China's military capabilities. Lui allegedly purchased hundreds of millions of dollars' worth of high-end servers from US manufacturers and arranged for their transshipment through Malaysia and Singapore before being re-exported to China.
Prosecutors claim Lui and his co-conspirators used false documents to misrepresent the true destinations of the shipments. The arrest comes amid growing concerns about US advanced AI chips falling into Chinese hands despite tighter export restrictions.
Written by urgent.news from Reuters Business via SCMP's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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