US arrests tech executive over alleged $300M GPU diversion to China
The suspect would have been better off if he used some “superintelligence” himself.
GPU chip smuggling. By Cybernews
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- US authorities arrested Greg Lui over an alleged $300 million server diversion to China.
- Prosecutors say the servers contained US-made GPUs restricted under export control rules.
- The indictment says Lui used Malaysia and Singapore as transit points and filed false documents.
- If convicted on all charges, Lui could face decades in prison.
Key Takeaways by nexos.ai, reviewed by Cybernews staff.
The United States has arrested a man accused of smuggling more than $300 million worth of computer servers equipped with high-tech components to China.
According to the US Department of Justice, 38-year-old Greg Lui, owner of a San Gabriel Valley-based technology company, sold the servers to Beijing.
Allegedly, the servers contained graphics processing units, or GPUs, manufactured in the US, which are used for “superintelligence applications.”
The Department of Justice claims the suspect used his company to purchase products that are subject to export restrictions. As part of the scheme, Lui provided false documentation to American manufacturers, mentioning permissible end users and end destinations that did not require an export license.
He then used countries such as Malaysia and Singapore as transit countries to export the servers to China. According to the indictment, Lui received more than $176 million from 2 Malaysian shipping companies.
By selling computer servers with advanced technology used to power the AI arms race to China, Lui willingly endangered the US national security and foreign policy interests. Therefore, he’s being charged with violating the Export Control Reform Act and the Export Administration Regulations, as well as smuggling and money laundering.
“Preventing the illegal export of controlled technology is critical to protecting our national security. These technologies provide core advantages to US forces, and ensuring they remain safeguarded prevents adversaries from exploiting them,” special agent in charge John E. Helsing said in a statement.
If found guilty of all charges, Lui faces a maximum penalty of 20 years in prison for ignoring US export laws, 20 years for money laundering, and 10 years for smuggling high-tech products abroad.
Nvidia has responded enthusiastically to the arrest.
“This case shows yet again that smuggling is a losing proposition, legally, economically, and technically. Our work with law enforcement has led to prosecutions, and we will continue to engage with law enforcement,” a spokesperson for Nvidia told Bloomberg.
