American Held for $300M AI Chip Smuggling

U.S. authorities have arrested Greg Liu, owner and manager of Earth Med Computer, on charges of collaborating with conspirators to smuggle prohibited NVIDIA chips worth approximately $300 million to China, in violation of U.S. export laws and sanctions. The company reportedly used its equipment to purchase old NVIDIA chips and send them to China during 2023-2024, despite restrictions on exporting high-performance chips to China. Liu faces penalties of up to 50 years in prison if convicted. NVIDIA has stated that such smuggling is legally and economically unfeasible and is working with authorities to stop it. This case is part of broader efforts by the United States to impose restrictions on the export of AI chips to China, where companies like Huawei are competing for the Chinese market.

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