California Tech Founder Greg Lui Charged with Illicit $300 Million GPU Server Export to China

On October 1, 2026, federal authorities took Greg Lui, the creator of California‑based Earthmade Computer Inc., into custody, alleging he directed a multi‑million‑dollar scheme that shipped high‑performance graphics processing unit (GPU) servers to China in breach of U.S. export regulations.

The indictment claims Earthmade falsified client paperwork to mask the hardware’s actual end‑point, channeling the cargo via third‑party logistics providers that hid the Chinese ultimate buyers. Prosecutors note the operation encompassed over $300 million in gear, among them state‑of‑the‑art AI accelerators designated by the U.S. government as dual‑use technology.

The DOJ’s Computer Crime and Intellectual Property Section emphasized that the implicated servers are essential for training large language models and other sophisticated AI applications. Skipping export licensing, the alleged actions may have enhanced Chinese AI development while stripping U.S. companies of a competitive advantage.

Law enforcement secured the arrest warrant following a months‑long probe that merged digital forensics, customs data, and undercover work. Investigators say they followed a trail of bogus invoices and modified shipping manifests that named fictitious U.S. purchasers, while the real recipients turned out to be Chinese research institutes and private companies.

Founded in 2019, Earthmade Computer marketed itself as a niche provider of high‑density compute clusters for data‑center customers. The firm’s public remarks stressed adherence to export rules, an assertion now being examined as the case moves through federal court.

Legal experts point out that the accusations may result in harsh sanctions, such as up to 20 years imprisonment and hefty fines, underscoring the increasing focus on protecting advanced semiconductor technology from illicit foreign transfer. The prosecution comes at a time of escalating friction between Washington and Beijing over tech trade limits.

The Commerce Department’s Bureau of Industry and Security announced it will keep overseeing related export actions and advised firms to perform thorough due‑diligence on clients and logistics partners. The case’s resolution could establish a benchmark for the vigor with which U.S. officials chase AI‑related hardware violations.