The scrutiny follows the arrest of Earthmade Computers owner Greg Lui, who is accused of smuggling over $300 million in restricted Nvidia servers through Malaysia and Singapore between 2023 and 2024. Court documents allege Earthmade received more than $176 million from Malaysian firms to facilitate these transfers. Recent enforcement alerts identified nearly $800 million in smuggled hardware in a single day, suggesting that China's AI ecosystem remains heavily dependent on American hardware despite strict export controls.
Tuesday, October 20, 2026
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Nvidia Rejects Blame in US Probe of Smuggled AI Chips to China
Tech15 days ago
Nvidia maintains that it adheres to United States export laws exactly as they are written, countering claims from officials that the company ignored clear "red flags" regarding shipments reaching China. The company argued it must honor current laws rather than the preferences of critics, according to its responses to an ongoing US probe. This conflict arises as regulators investigate a systemic failure by both the government and industry to prevent high-end graphics processors from being diverted to adversaries.
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