Earthmade CEO Greg Lui Arrested in Alleged $300M Nvidia Chip Smuggling Scheme
US prosecutors accuse Earthmade CEO Greg Lui of illegally routing over $300 million in Nvidia AI servers to China via Malaysia, Singapore and Hong Kong.
Summary
US authorities arrested Earthmade Computer CEO Greg Lui, 38, in October 2026, alleging he used false paperwork and freight forwarders in Malaysia and Singapore to divert more than $300 million of export-controlled Nvidia A100 and H100 servers to China from October 2023 through August 2026. Emails plus Bank of America and JPMorgan records underpin three counts covering conspiracy to violate the Export Control Reform Act and Export Administration Regulations, smuggling and money laundering. Prosecutors seek all proceeds; conspiracy and laundering each carry up to 20 years, smuggling 10.
In 2024, an order for 70 servers listed Malaysia; Lui allegedly bought 27 for $7.614 million before a co-conspirator said they reached China. Another 92 went through Singapore, Malaysia and Hong Kong to a Hangzhou AI company. A 100-server H100 shipment worth over $22 million used a fake buyer led by “Jackie Lui,” an identity allegedly purchased three years earlier. Earthmade received more than $176 million in 2024.
Nvidia says less than 0.5% of its products are diverted and China’s AI largely uses Huawei, but officials suspect hundreds of thousands of shadow-traded chips support Chinese data centers, potentially filling a hardware gap until 2030. Authorities cite undersized Taiwanese facilities, fake Thai leases and Megaspeed’s possible diversion of tens of thousands of chips; Nvidia says it screens buyers, whitelists Asian firms and will serve Megaspeed unless ordered otherwise. Industry opposition weakened an anti-smuggling bill, Jensen Huang declined congressional testimony, and the Trump administration favors self-policing.
Positives
- Emails and records from Bank of America and JPMorgan gave investigators financial evidence supporting the three federal charges.
- Taiwan’s Coast Guard seized most export-controlled servers in a separate case after finding discrepancies in shipping manifests.
- The Justice Department is seeking forfeiture of all funds allegedly generated through Lui’s operation.
- Nvidia says it screens buyers and has blocked shipments when the ultimate recipients could not be identified.
Risks & concerns
- More than $300 million in export-controlled Nvidia servers allegedly reached China between October 2023 and August 2026.
- Earthmade allegedly collected over $176 million in 2024 while using false destinations, buyers and identifying documents.
- Officials suspect hundreds of thousands of AI chips are circulating through a shadow market serving Chinese data centers and possibly hyperscalers.
- Nvidia continues working with Megaspeed despite US concerns that it may have diverted tens of thousands of excess chips.
- Industry opposition weakened an anti-smuggling bill, while Jensen Huang declined an invitation to testify before Congress.