California tech CEO arrested over alleged $300m AI chip smuggling to China

Federal agents arrested a California tech chief executive on Wednesday over an alleged scheme to smuggle more than $300 million in restricted AI chips into China.

Greg Lui, 38, also known as “Yiu Kong Lui”, of San Gabriel, was arrested by FBI and Department of Commerce agents at the City of Industry headquarters of Earthmade Computers, the company he founded and runs, the New York Post reported (https://nypost.com/2026/10/01/us-news/california-tech-ceo-arrested-for-allegedly-smuggling-300-million-in-restricted-ai-chips-into-china/).

Lui faces federal charges over allegedly selling Beijing a large volume of American-made AI graphics processors and export-controlled computer servers in violation of US export laws, in a case investigators say could have threatened national security.

“This defendant allegedly used false paperwork and shipments through third countries to smuggle more than $300 million in export-controlled computer servers to China,” said First Assistant United States Attorney Bill Essayli. “We will aggressively prosecute those who put our national security at risk for profit.”

“Protecting America’s national security means keeping our advanced Super Intelligence technology from being used to strengthen our adversaries’ military capabilities,” Essayli added.

Investigators said the advanced hardware allegedly smuggled by Lui could have been put to use by the Chinese military. Agents tracked Lui as he drove from his San Gabriel home to the company’s offices, arresting him shortly after he arrived at work. Lui did not speak as he was taken into custody.