Short seller Culper flagged Nvidia CEO's ties to suspected Chinese spy in May
Six months before the Nvidia spy scandal emerged, the New York-based short seller firm Culper Research had already raised questions about Nvidia CEO Jensen Huang's unusually close relationship with Alice Huang, an executive at Megaspeed, a Singapore-based company that buys Nvidia chips. She is now suspected to be a Chinese spy.
The scandal itself is recent. The Nvidia CEO admitted to an extramarital affair over the weekend, and Nvidia has now opened a formal investigation into his relationship with Alice Huang, who shares his last name but is not related. U.S. intelligence officials believe she was recruited by the Chinese government to collect intelligence on Jensen Huang and to influence his position on U.S. export controls on advanced AI chips.
Culper's May 13 report is resurfacing because it picked up on the connection between the two while investigating Megaspeed's ties to Nvidia. The report called the relationship between the two executives "uncomfortably close" and noted that the Nvidia CEO was spotted partying and socializing with Alice Huang on multiple occasions. It also claimed that some Nvidia employees wondered whether they had a "special relationship."
The report went further than the personal connection. Culper theorized that the China business Nvidia lost to export controls had been rerouted through Southeast Asia, and that Megaspeed, a major chip buyer in the region, was secretly financed by Chinese tech giant Alibaba through shell companies. It pointed to financial records showing Megaspeed's total liabilities and equity had grown from $33 million at the end of 2023 to around $3 billion by the end of 2024, much of it in the form of refundable deposits from an unidentified source.
The Financial Times reported Monday that documents show Alibaba lent money to Megaspeed through subsidiaries.
TechCrunch adds a warning: Culper is a short seller, so it stood to benefit financially from making these allegations, and those about possible illegal chip diversion have not been independently verified. The report is available on the web and was posted to X back in May.
Key facts
- Culper Research's May 13 report called Jensen Huang's relationship with Megaspeed executive Alice Huang "uncomfortably close", six months before the Nvidia spy scandal emerged.
- Alice Huang, who shares the CEO's last name but is not related, is now suspected to be a Chinese spy; U.S. intelligence officials believe the Chinese government recruited her to gather intelligence on him and influence his stance on export controls.
- Jensen Huang admitted to an extramarital affair over the weekend, and Nvidia has opened a formal investigation into his relationship with her.
- Culper cited financial records showing Megaspeed's total liabilities and equity grew from $33 million at the end of 2023 to around $3 billion by the end of 2024, much of it refundable deposits from an unidentified source.
- The Financial Times reported Monday that documents show Alibaba lent money to Megaspeed through subsidiaries; Culper's chip diversion theory remains unverified.
Why it matters
Nvidia's chips sit at the centre of U.S. export controls on advanced AI hardware, so a CEO linked to a person U.S. intelligence officials believe was recruited by the Chinese government is a serious matter. The story also shows that questions about the relationship were public in May, in a report posted to X, before the scandal broke. Nvidia has now opened a formal investigation.
Who it affects
Nvidia and its CEO Jensen Huang are the direct subjects. Megaspeed, the Singapore-based chip buyer, and its executive Alice Huang are drawn in too. Alibaba is named in the Financial Times report on lending to Megaspeed through subsidiaries. The wider issue touches anyone following U.S. export controls on advanced AI chips and the flow of Nvidia hardware through Southeast Asia.
How to use it
Treat Culper's report as a lead, not a finding. It is available on the web and was posted to X in May, so readers can see exactly what it claims. The Financial Times report on Alibaba's loans to Megaspeed is the piece to compare it against. Keep the personal relationship, the financing theory and the alleged chip rerouting as three separate questions.
How solid is it
Mixed. That Jensen Huang admitted to an affair and that Nvidia opened a formal investigation are stated by TechCrunch as fact. That Alice Huang is a spy is only suspicion: U.S. intelligence officials are said to believe she was recruited, and no evidence is presented in the article. Culper's claims about Alibaba financing through shell companies are a theory; the Financial Times reporting on Alibaba's loans through subsidiaries is a separate, later report. The financial figures come from records cited by Culper.
Risks and caveats
Culper is a short seller, so it stood to benefit financially from its allegations. Claims about possible illegal chip diversion have not been independently verified. The Culper report's observations about socializing and employee speculation are its own characterizations. The suspicion about Alice Huang should not be read as an established fact, and the source does not say how the investigation will end.
“uncomfortably close”
— Culper Research report, describing the relationship between Jensen Huang and Alice Huang