US authorities have arrested Greg Lui, 38, of California, also known as “Yiu Kong Lui”, on suspicion of smuggling more than $300m worth of computer servers to China. The Department of Justice announced the arrest, stating that Lui allegedly used false paperwork and routed shipments through third countries to bypass export controls.
The justice department stated that the servers contained “US-manufactured graphics processing units (GPUs) commonly used for Super Intelligence (SI)”, which is the Trump administration’s term for artificial intelligence (AI). Bill Essayli, the US attorney for the central district of California, emphasised the importance of preventing advanced technology from strengthening adversaries' military capabilities.
Lui reportedly operated a technology company called Earthmade Computer, which he used to purchase and send items to China without the necessary licenses from the US Department of Commerce between 2023 and 2024. The company allegedly shipped items to countries such as Malaysia and Singapore, where no such license was required, before illegally re-exporting them to China. If convicted, Lui could face a maximum of 50 years in prison.