In May, the New York-based short-seller firm Culper Research raised concerns about Nvidia chief executive Jensen Huang’s frequent interactions with Alice Huang, an executive at Singapore-based Megaspeed, a major purchaser of Nvidia chips. Alice Huang is now suspected of acting as a Chinese intelligence asset. Over the weekend Jensen Huang acknowledged an extramarital affair and Nvidia announced a formal probe into his relationship with Alice Huang, who shares his surname but is not a family member.
U.S. intelligence officials have expressed the view that the Chinese government recruited Alice Huang to gather information on Jensen Huang and to sway his position regarding American export restrictions on advanced artificial-intelligence processors. The officials contend that her role could affect Nvidia’s compliance with export-control policies, although no public charges have been filed.
Culper’s May 13 briefing, which resurfaced after the scandal, described the bond between the two executives as “uncomfortably close,” noting that they were observed attending social events together on several occasions. The report also cited internal comments suggesting that some Nvidia staff wondered whether a “special relationship” existed, indicating internal unease about the proximity of the two leaders.
The short-seller’s analysis further theorised that revenue Nvidia lost to export controls might have been redirected through Southeast Asian channels, with Megaspeed allegedly receiving covert financing from Chinese technology conglomerate Alibaba via a network of shell entities. Financial statements showed Megaspeed’s combined liabilities and equity expanding from roughly $33 million at the close of 2023 to about $3 billion by the end of 2024, a surge largely attributed to refundable deposits from an unidentified source.
The Financial Times reported on Monday that documentation reveals Alibaba extended loans to Megaspeed through subsidiary companies, lending credence to Culper’s financing hypothesis. However, the claim that Nvidia chips were illegally diverted remains unverified by independent investigators, and Culper’s position as a short-seller creates a potential conflict of interest, as the firm could profit from negative market sentiment toward Nvidia.
Culper’s original report remains publicly accessible online and was initially shared on the social platform X in May. While the article includes a disclaimer about affiliate links, the outlet maintains that its editorial independence is not compromised. The ongoing investigation by Nvidia will determine whether any legal or regulatory breaches occurred in connection with the alleged espionage and alleged financial arrangements.