Jensen Huang's Affair Helped Chinese Firms Obtain $7.5 Billion in Nvidia Chips

It has been reported that $7.5 billion worth of advanced Nvidia chips were shipped to Chinese companies through an affair between Nvidia CEO Jensen Huang and Alice Huang, who is alleged to be a Chinese agent.

According to a report in The Information, $7.5 billion worth of Nvidia chips were delivered to Chinese firms through an affair between Nvidia CEO Jensen Huang and Alice Huang. While it is alleged that Alice Huang worked on behalf of the Chinese government, Jensen Huang has become the target of criticism after admitting to cheating on his wife.

The report states that Alice Huang organized the shipments by establishing a network of companies in China and Singapore with her husband and sister. It was noted that Shanghai Century Litong, a company within this network, was granted preferred cloud partner status by Nvidia in 2023, providing priority access to a limited supply of advanced chips. The network is alleged to have moved approximately 240,000 processors to China, including restricted models such as the H100, H200, and A100. Some of the chips reportedly supported the artificial intelligence efforts of major Chinese tech companies like Alibaba and Tencent.

It was reported that the chips were first sent to data centers in Malaysia or Indonesia via the Singapore-based company Megaspeed, which was at the center of the operation, and then the computing power was rented online to users within China. This method was used to keep the hardware outside of direct export restrictions. The U.S. had restricted the sale of the most powerful AI chips to China in 2022.

President Trump stated that the FBI is investigating the matter and that he believes Huang, noting that the FBI told him they were unaware of Jensen Huang being a spy. While the Chinese side denied the espionage allegations, the Nvidia board of directors launched an independent investigation into the matter and stated that there is currently no evidence that company secrets or national security have been compromised. Following the developments, Nvidia shares fell more than 4 percent on Monday.