California Tech Founder Charged in $300 Million GPU Export Scheme to China

Federal investigators announced Wednesday that Greg Lui, a 38‑year‑old owner of a California‑based technology firm, has been taken into custody on accusations of directing a multi‑year operation that moved more than $300 million worth of high‑performance GPU‑equipped servers to China.

According to the Department of Justice, the alleged scheme relied on a chain of overseas transshipment companies that concealed the final destination of the equipment, allowing the servers to bypass U.S. export‑control regulations that restrict advanced computing hardware to certain foreign entities.

Lui’s company, which specializes in custom server builds for artificial‑intelligence and data‑center applications, is said to have supplied the hardware to the intermediaries, which then re‑exported the units to Chinese end‑users. Prosecutors contend that the operation violated the Export Administration Regulations, which aim to prevent technology that could enhance foreign military capabilities from leaving the United States without proper licensing.

The case arrives amid heightened scrutiny of semiconductor and GPU exports, as Washington has warned that such components are critical to the development of next‑generation weapons systems. Over the past few years, the U.S. has tightened licensing requirements and expanded the list of restricted items, particularly those that can accelerate machine‑learning models.

Legal experts note that the alleged $300 million in shipments represents one of the larger export‑violation cases involving AI‑related hardware. If convicted, Lui could face significant fines and a prison term that reflects both the monetary value of the exports and the perceived national‑security implications.

The Justice Department has not yet disclosed whether additional individuals or companies are under investigation, but officials indicated that the probe could expand to other actors who facilitated similar transfers. The next court appearance for Lui is scheduled for next month, where a bail hearing and formal charging documents are expected to be presented.