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U.S. prosecutors allege that a California technology-company owner and co-conspirators routed more than $300 million in export-controlled servers to China using third countries and false paperwork. The October 1, 2026, Justice Department announcement does not name Nvidia or identify the server or GPU models, so the allegation that these were Nvidia AI servers is not independently established in the announcement. The case is an indictment, not a finding of guilt.
What does the $300 million China server case allege?
According to the indictment summary in the U.S. Department of Justice announcement, Greg Lui, 38, also known as Yiu Kong Lui, of San Gabriel, California, was arrested after a federal grand jury returned a three-count indictment on September 29, 2026. Prosecutors allege that Lui owned Earthmade Computer Inc., a technology company based in City of Industry, California, and that he and co-conspirators used it from 2023 to 2024 to obtain export-controlled items for China without the required U.S. Commerce licenses.
The alleged scheme involved more than $300 million in servers. Prosecutors say equipment was shipped through countries including Malaysia and Singapore before being re-exported to China. They also allege that the conspirators gave U.S.-based manufacturers false paperwork about the equipment’s end users and destinations.
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In one transaction described by DOJ, Lui allegedly ordered 27 servers in January 2024 for approximately $7,614,000. The servers were shipped from Los Angeles to Kuala Lumpur. In March, a co-conspirator allegedly told a Malaysian government official that the servers had been transshipped to a buyer in China. DOJ also says Earthmade received more than $176 million from two Malaysia-based shipment companies between January and October 2024. These are allegations summarized by prosecutors, not independently established findings.
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Were Nvidia AI servers involved?
The DOJ announcement does not name Nvidia, identify a manufacturer, or specify the GPU or server models in the Lui case. It describes GPUs made by companies specializing in “Super Intelligence” computing, but that wording does not establish that the hardware was Nvidia equipment. The Nvidia attribution in the headline therefore should not be treated as a confirmed detail of the indictment summary.
Because the announcement does not provide model names, it also does not establish whether the servers contained H200 chips or any other particular Nvidia GPU. Claims naming a product model would go beyond the details DOJ released.
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What charges does Lui face?
The indictment charges Lui with conspiracy to violate the Export Control Reform Act and Export Administration Regulations, outbound smuggling, and conspiracy to commit money laundering. DOJ said he was expected to make an initial appearance and be arraigned on October 1, 2026; its announcement does not report a conviction.
If convicted on all charges, DOJ says Lui could face maximum penalties of 20 years for the export-control conspiracy, 10 years for smuggling, and 20 years for the money-laundering conspiracy. Those are statutory maximums cited by prosecutors, not a prediction of a sentence.
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How does the allegation fit U.S. policy on chip exports to China?
The alleged conduct concerns exports prosecutors say lacked required licenses. That is distinct from licensed sales allowed under specific conditions. On January 13, 2026, the Bureau of Industry and Security said it would review applications to export Nvidia H200, AMD MI325X, and similar chips to China case by case, subject to conditions. BIS said applicants must show that exports would not reduce semiconductor production capacity available to U.S. customers, that the Chinese purchaser has export-compliance procedures such as customer screening, and that the product has passed independent third-party testing in the United States. BIS Under Secretary Jeffrey Kessler said, “Export controls should evolve with changes in technology, while protecting national security. Permitting the sale of the H200 to China under controlled conditions will strengthen the American technology ecosystem.” See the BIS announcement.
In a July 2026 filing, NVIDIA disclosed that the U.S. government had granted licenses for small amounts of H200 products to specific China-based customers, while restrictions imposed by the People’s Republic of China limited sales. NVIDIA said shipments under that program were less than 1% of Data Center revenue in its most recent quarter. The company also said the H200 shipments required U.S. inspection before shipment and were subject to a 25% U.S. import tariff. These are company disclosures, not an independent audit, and they do not identify the hardware in the Lui case.
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How is this different from the other 2026 China server case?
DOJ announced a separate case on March 19, 2026, involving three different defendants and a server manufacturer. The Justice Department said the company bought approximately $2.5 billion in servers between 2024 and 2025, and alleged that at least approximately $510 million was diverted to China between late April and mid-May 2025. That case involved allegations of false records, transshipment, and staged dummy servers. Those figures and allegations belong to that separate matter; they are not part of the Lui indictment. See the March DOJ announcement.
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