Brief
California tech CEO Greg Lui arrested for allegedly smuggling $300 million in AI chips to China
The FBI and Department of Commerce say Lui used fake paperwork and freight forwarders to bypass export licences.
By Felo News Desk · Published
Federal agents arrested Greg Lui, 38, chief executive of Earthmade Computers, on Oct. 1, 2026, accusing him of illegally exporting more than $300 million in restricted AI graphics processors to China.
What happened
Agents from the FBI and the Department of Commerce tracked Lui as he drove a white‑wrapped Tesla Cybertruck from his San Gabriel home to Earthmade’s headquarters in the City of Industry. Upon arrival, agents handcuffed him at gunpoint, searched him and placed him in a vehicle for processing.
What the reports add
The New York Post reports that prosecutors allege Lui and co‑conspirators bought Nvidia‑made AI servers between 2023 and 2024, then shipped them to Malaysia and Singapore—countries that do not require U.S. export licences—before re‑exporting the hardware to China. The filing claims the scheme used falsified documents to suggest the equipment was destined for non‑restricted locations, allowing the purchases to bypass licensing requirements intended to protect national security.
What was said
The article quotes the outlet’s reporter William Laing, who described the raid: “Agents tracked Lui as he drove a Tesla Cybertruck … handcuffing him at gunpoint soon after he arrived at work.” No statements from government officials or Lui were included.
How it came about
Earlier Felo coverage linked Nvidia‑related incidents in California, including a September 30 theft of Nvidia‑branded trailers in Fremont and a September 14 market sell‑off triggered by AI‑safety concerns. Those stories illustrate the heightened scrutiny on AI hardware supply chains, providing context for the current prosecution.
Key facts
- Greg Lui, CEO of Earthmade Computers, was arrested on Oct. 1, 2026 for allegedly smuggling over $300 million in AI chips to China. (nypost.com)
- Prosecutors say the chips were Nvidia graphics processors shipped via Malaysia and Singapore to evade U.S. export licences. (nypost.com)
- Agents seized Lui at Earthmade’s City of Industry headquarters after tracking his Tesla Cybertruck from San Gabriel. (nypost.com)
Sources
- [1] nypost.com — originally reported as “Exclusive | Friendly-faced California tech CEO arrested by feds for allegedly hiding $300M Chinese secret”
