Ars Technica·4 min read·medium

US arrests tech CEO accused of smuggling $300M in Nvidia chips into China

Ashley Belanger
US arrests tech CEO accused of smuggling $300M in Nvidia chips into China
✦AI Summary

The US Department of Justice has arrested a tech CEO for allegedly smuggling $300 million worth of Nvidia chips into China using fraudulent paperwork. The case highlights ongoing efforts to enforce export controls on high-end AI hardware to prevent national security risks.

Why it matters

The illegal diversion of AI-capable chips to China undermines US export restrictions intended to limit the advancement of foreign military and AI capabilities.

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Nvidia ignoring red flags? US arrests tech CEO accused of smuggling $300M in Nvidia chips into China Nvidia’s chip-smuggling problem won’t go away as arrests continue.

21 Nvidia H100 graphics processor chips were illegally diverted to China, FBI says. Credit: Bloomberg / Contributor | Bloomberg Nvidia H100 graphics processor chips were illegally diverted to China, FBI says. Credit: Bloomberg / Contributor | Bloomberg Text settings Story text Size Small Standard Large Width * Standard Wide Links Standard Orange * Subscribers only Learn more Minimize to nav The US has arrested another suspect accused of smuggling high-end computer servers containing export-controlled Nvidia chips into China.

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.

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