In March, US authorities charged a co-founder of Super Micro Computer Inc with illegally diverting billions of dollars in Nvidia chips to China. (Reuters pic)

WASHINGTON: Federal prosecutors arrested a California man on Thursday on charges of smuggling computer servers containing US$300 million worth of Nvidia Corp artificial intelligence (AI) chips to China in violation of US export controls.

Authorities said that Greg Lui, the owner of privately held Earthmade Computer Inc worked with other unidentified co-conspirators from 2023 to 2024 to ship servers containing the restricted chips to buyers in China without the required US licenses.

The charges against Lui mark the latest in a series of federal prosecutions of individuals accused of violating export controls aimed at keeping advanced US-made chips out of Chinese hands over national security concerns.