US Arrests CEO for Allegedly Smuggling $300 Million in Nvidia Chips to China

<p>The US has arrested a suspect accused of smuggling high-end computer servers containing export-controlled Nvidia chips into China.</p><p>In a press release on Thursday, the Department of Justice accused 38-year-old Greg Lui of using false paperwork to mask shipments of servers worth more than $300 million that he allegedly knew were ultimately destined for China.</p><p>As the CEO of Earthmade Computer, Lui allegedly conspired with freight-forwarding firms in South Asian countries including Malaysia and Singapore to illegally divert chip shipments into China, including Nvidia’s A100 GPUs and H100 GPUs, according to an indictment from the FBI. These chips are capable of processing large amounts of data and training large language models, which the US government has expressed concerns about, fearing that access to such technology could enhance China's AI capabilities or strengthen its military.</p>