California man's smuggling scheme sent $300 million in AI hardware to China, feds say
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Set us as preferred The owner of a San Gabriel Valley technology company was arrested Thursday after federal prosecutors charged him with smuggling more than $300 million of restricted computer hardware to China.Greg Lui, the owner of Earthmade Computer Inc.in the City of Industry, allegedly sold high-end computer servers containing U.S.-manufactured Nvidia chips to the Chinese government, while claiming they were meant for customers in Malaysia and Singapore, according to the federal indictment filed this week.
The U.S.Commerce Department doesn’t require an export license to ship this type of hardware to those two countries, but does for shipments to China.“Protecting America’s national security means keeping our advanced Super Intelligence technology from being used to strengthen our adversaries’ military capabilities,” First Assistant U.S.
Atty.Bill Essayli said in a Justice Department news release.
“We will aggressively prosecute those who put our national security at risk for profit.” Business The chipmaker’s graphics processing units, or GPUs, still dominate the artificial intelligence data center market.But the stock has tumbled 16% since hitting an all-time high on May 14.President Trump signed an executive order this week rebranding “artificial intelligence” technology as “super intelligence” amid backlash and doomsday warnings about the rapidly developing tech — including from some AI executives.Lui has been charged with one count of conspiracy to violate export controls, one count of outbound smuggling and one count of conspiracy to commit money laundering.
An attorney representing him has not yet been listed in available court documents, and The Times was unable to reach Lui for comment.The federal indictment, filed Tuesday in the Central District of California, comes as some lawmake...