Jensen Huang's Relationship With Alleged Chinese Spy Linked To $7.5 Billion Nvidia Chip Shipments, Report Says

Nvidia chief executive Jensen Huang's reported relationship with Chinese businesswoman Alice Huang allegedly helped facilitate at least $7.5 billion worth of the American chipmaker's sales to Chinese companies, according to a report by The Information. The report, cited by Reuters on November 10, said Alice Huang used her connections with the Nvidia chief and the company's distributors to secure supplies of advanced processors when orders faced restrictions under US export controls. The alleged shipments included around 240,000 H100, H200 and A100 chips, some of which reportedly reached major Chinese technology companies and artificial intelligence laboratories.

The allegations have intensified scrutiny of Nvidia's business dealings with China and the circumstances surrounding Huang's reported relationship with Alice Huang, also known as Huang Le. Reuters said it could not independently verify the claims. Nvidia, meanwhile, has launched an independent investigation into whether its chief executive was targeted by a foreign intelligence operation.

How Alice Huang Allegedly Helped Secure Nvidia Chips For China

According to The Information, Alice Huang, her husband and her sister established a network of companies across China and Singapore to acquire Nvidia processors. At the centre of the network was Shanghai-based Century Litong, founded in June 2023. The company secured preferred cloud partner status with Nvidia by October that year, a designation that reportedly gave it priority access to the chipmaker's supplies.

When orders for processors subject to US export restrictions stalled, Alice Huang allegedly used her connections with Nvidia and its distributors to secure supplies. The report said approximately 240,000 H100, H200 and some A100 chips were moved into China through the network. Some of the processors eventually reached data centres serving Alibaba, Tencent and smaller Chinese AI laboratories.

Alice Huang previously held senior positions at a Shanghai investment firm before becoming the controlling shareholder of Singapore-based cloud computing company Megaspeed International. She served as its managing director from March to November 2023, according to Reuters. Megaspeed has faced scrutiny over suspected diversion of advanced Nvidia chips to Chinese customers in violation of US export restrictions.

Nvidia Launches Probe As US Scrutiny Intensifies

Nvidia's board announced an independent investigation after reports emerged that Huang may have been the target of a Chinese intelligence operation. The company said it had no reason to believe that its trade secrets or US national security had been compromised. It also said Huang had committed to cooperating with the inquiry, which is being led with the assistance of external legal advisers.

Huang acknowledged in a letter to employees that he had been unfaithful to his wife but did not identify the woman involved. China has rejected the espionage allegations, calling them unsubstantiated smears. The FBI is separately examining whether Huang was targeted by foreign intelligence.

The controversy has also intensified political scrutiny in Washington. Senate Democratic leader Chuck Schumer has called for tighter restrictions on chip exports to China, while Republican Senator Kevin Cramer has questioned Huang's suitability to remain chief executive. Nvidia shares have fallen 9.5 per cent since the allegations emerged, with the company losing approximately $430 billion in market value over two trading sessions, Reuters reported.