US arrests tech CEO accused of smuggling $300M in Nvidia chips into China

United States authorities arrested Earthmade Computer CEO Greg Lui on October 2, 2026, for allegedly smuggling over $300 million in export-controlled Nvidia chips and computer servers into China. The Department of Justice stated that Lui used false paperwork, fake buyer identities, and freight-forwarding firms in Malaysia and Singapore to divert Nvidia A100 and H100 graphics processing units between October 2023 and August 2026.

Investigators uncovered the scheme through emails and bank records, revealing that Lui's firm received more than $176 million in 2024 alone. Lui faces three counts, including conspiracy to violate the Export Control Reform Act, export regulations, smuggling, and money laundering. If convicted, he faces up to 20 years in prison for conspiracy and money laundering counts, and up to 10 years for smuggling.

The arrest highlights ongoing scrutiny regarding compliance gaps at Nvidia, though the company maintains that diverted products represent a tiny fraction of its total sales and defends its customer screening protocols.