Federal prosecutors have charged the CEO of California-based Earthmade Computer Inc. with smuggling export-controlled AI servers to China. According to the Department of Justice, the defendant used falsified documentation to misrepresent the final destination of the hardware, claiming the shipments were intended for permissible end users that did not require export licenses.
The illegal shipments were routed through Malaysia and Singapore to bypass restrictions. The total value of the smuggled computer servers is estimated at more than $300 million. The investigation is being conducted jointly by the FBI, the Department of Commerce, and the Defense Criminal Investigative Service.
The defendant faces charges of conspiracy to violate the Export Control Reform Act, outbound smuggling, and conspiracy to commit money laundering. Following his initial appearance on October 1, he could face up to 20 years in prison if convicted on all counts. This case follows a recent indictment in Taiwan involving the illegal export of Nvidia B300 GPUs.
