US authorities arrested a California man for allegedly smuggling more than $300 million worth of export-controlled computer servers containing high-end US-made graphic processing units to China, the Justice Department said Thursday.

Multiple media outlets reported that the computer servers contained restricted Nvidia (NVDA) AI chips.

Greg Lui, owner of Earthmade Computer, allegedly worked with co-conspirators from 2023 to 2024 to purchase restricted servers and ship them to China without the required US licenses, the Justice Department said.

The agency said the group used false documentation to identify permissible end users and routed shipments through Malaysia and Singapore before reshipping them to China.

Earthmade received more than $176 million from two Malaysia-based shipping companies between January and October 2024 as part of the alleged scheme, according to the Justice Department.

Lui faces charges of conspiracy to violate US export controls, outbound smuggling and conspiracy to commit money laundering, the agency said.

Earthmade did not immediately respond to MT Newswires' request for comment. Efforts to reach Lui were unsuccessful.