Short Seller Raised Nvidia CEO’s Ties to Suspected Chinese Spy Six Months Before Scandal

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Culper Research highlighted Nvidia CEO Jensen Huang's close ties to Alice Huang, suspected Chinese spy, and possible chip diversion months before the espionage revelations.

Six months prior to the public emergence of a spy scandal involving Nvidia, the short seller firm Culper Research from New York had already drawn attention to the unusually close relationship between Nvidia CEO Jensen Huang and Alice Huang, an executive at Megaspeed, a Singapore-based company purchasing Nvidia chips. Alice Huang is now suspected of being a Chinese spy.

Jensen Huang publicly admitted to an extramarital affair with Alice Huang, prompting Nvidia to launch a formal investigation into their relationship. U.S. intelligence officials suspect Alice Huang was recruited by the Chinese government to gather intelligence on Jensen Huang and potentially influence his stance on U.S. export controls concerning advanced AI chips.

Culper Research’s report dated May 13 brought this connection to light during its investigation of Megaspeed’s links with Nvidia. The report described the relationship between the two executives as “uncomfortably close,” citing multiple sightings of the Nvidia CEO socializing with Alice Huang and speculations within Nvidia about a possible “special relationship.”

The short seller firm proposed that Nvidia’s business lost due to export restrictions with China might have been redirected through Southeast Asia. They suggested that Megaspeed, a significant regional chip buyer, was secretly funded by Chinese tech giant Alibaba via shell companies. Financial data indicated Megaspeed’s liabilities and equity ballooned from $33 million at the end of 2023 to approximately $3 billion by the end of 2024, largely in refundable deposits from an unidentified source.

The Financial Times further reported that documents reveal Alibaba provided loans to Megaspeed through subsidiaries. While Culper Research stands to gain financially from these allegations due to its short position on Nvidia stock, and the claims regarding illegal chip diversion lack independent verification, the situation has still raised serious questions about Nvidia’s exposure to Chinese espionage risks.

This developing story underscores the complex geopolitical and corporate challenges in the semiconductor industry, especially regarding export controls on advanced AI technology components and the potential for covert influence operations targeting key executives in leading tech firms.