Suspected Smuggler Arrested in Scheme to Export Restricted Nvidia Chips to China
A suspect has been arrested in the United States, accused of smuggling high-value Nvidia chips, subject to export controls, to China. The scheme involved servers valued at over $300 million.
U.S. authorities have arrested Greg Liu, 38, on charges of smuggling more than $300 million worth of high-end Nvidia computer servers containing export-controlled chips into China. Liu is accused of using falsified documents to conceal shipments of servers that he knew were destined for China.
Liu, identified as the CEO of Earthmade Computer, allegedly conspired with freight forwarding companies in Malaysia and Singapore to illegally transship servers to China. These servers included Nvidia's A100 and H100 graphics processors, crucial for AI development, as well as consumer-grade GeForce RTX 4090 and RTX 5090 models. U.S. officials have expressed concern that China's access to such chips could rapidly advance its artificial intelligence capabilities and military power, posing a national security risk.
Evidence, including emails and bank records, revealed the smuggling operation, which reportedly ran from October 2023 to August 2026. A key piece of evidence was a 2024 email discussing an order for 70 servers equipped with restricted graphics processors, falsely declared as destined for Malaysia. Liu allegedly purchased 27 of these servers from a U.S. manufacturer for approximately $7.6 million, with a co-conspirator later confirming their ultimate delivery to China.
Authorities also detailed another shipment of 92 export-controlled servers that were routed through Singapore to Malaysia before being transferred to Hong Kong, China. The chips were ultimately delivered to an AI company in Hangzhou. In a separate instance, Liu attempted to obscure the shipment of 100 servers, each containing Nvidia H100 processors and valued at over $22 million, by submitting falsified documents using a "straw buyer" and a "borrowed" identity. The FBI stated that Liu had been using this individual's identity for commercial transactions for three years to advance his export control evasion scheme.
Liu's company reportedly profited over $176 million from these smuggling activities. He faces charges including conspiracy to violate the Export Control Reform Act, smuggling, and money laundering. If convicted, he could face up to 20 years in prison for conspiracy and money laundering charges, and up to 10 years for smuggling.