A new report alleges that Nvidia CEO Jensen Huang's personal relationship with a woman identified as a suspected Beijing agent helped Chinese firms acquire $7.5 billion worth of advanced chips, prompting an independent investigation by the company's board.
According to The Information, Alice Huang, who has been linked to Jensen Huang, worked with her husband and sister to establish a network of companies in China and Singapore that facilitated the shipments. One of these firms, Shanghai Century Litong, received preferred cloud partner status from Nvidia in 2023, granting it priority access to limited supplies of advanced processors.
The network reportedly moved approximately 240,000 chips, including restricted models such as the H100, H200, and A100, into China. Some of these chips were used to support computing work for major Chinese tech companies, including Alibaba and Tencent.
Singapore-based Megaspeed, where Alice Huang served as an executive, was central to the operation. Chips were often shipped first to data centers in Malaysia or Indonesia, and computing power was then leased online to users inside China. This method allowed the hardware to remain outside China's borders while still serving Chinese customers, effectively working around direct export limits.
The United States restricted Nvidia's most powerful AI chips from going to China in 2022, targeting high-performance processors like the A100 and H100 to slow China's advances in artificial intelligence and related military uses. Under the Trump administration, limited sales of the more advanced H200 were allowed to approved Chinese buyers under licenses.
President Trump has said the FBI is looking into the matter and that he believes Huang will “be in good shape.” Trump stated that Huang told him he had no idea the person was a spy, and Trump added, “I really believe him.” Trump also indicated he would be willing to include Huang on an upcoming trip to China, but that remains uncertain.
Beijing has rejected the spy allegations as groundless. Meanwhile, Nvidia's board has opened an independent investigation, though Huang continues as CEO. The board has clarified that it has no reason to believe company secrets or national security were compromised.
Nvidia shares slipped more than 4% on Monday and were on track to open lower on Tuesday as investors weighed the developments.
This article is for informational purposes only and does not constitute financial advice.
