Nvidia Faces Scrutiny Over Alleged China Chip Diversion Tied to CEO’s Personal Connections
A report has alleged that advanced artificial intelligence (AI) chips worth approximately 11 trillion won ($7.5 billion) were diverted to China by exploiting personal connections with Jensen Huang, CEO of Nvidia. The Information, a U.S. technology news outlet, reported on Nov. 10 (local time) that A
Advanced AI chips, valued at roughly $7.5 billion, are alleged to have been diverted to China by exploiting personal connections with Nvidia CEO Jensen Huang. According to The Information, Alice Huang, Jensen Huang's wife, allegedly used her personal relationship with the CEO to help supply the chips to Chinese companies. To circumvent scrutiny, Alice Huang reportedly enlisted family members to create a complex corporate network linking China, Singapore and Malaysia.
New entrant to the network, Shanghai Century Litong, a Chinese company founded in June 2023, acquired Nvidia’s "preferred cloud partner" status just four months later, in October of the same year. Alice Huang's sister, Huang Yu, reportedly participated as a founding shareholder in Century Litong, as did a man named Kang Wei, believed to be Alice Huang’s husband.
The network reportedly involved at least 240,000 high-performance chips, including H100, H200 and A100 models, which were reportedly used by Chinese companies to develop and train AI models. Megaspeed, a Singapore-based company serving as a key hub for moving chips from Southeast Asia to China, allegedly received 240,000 chips. The allegations have raised questions over potential violations of U.S. export controls, causing Nvidia's shares to plummet 9.5% and wiping approximately $432 billion off the company’s market capitalization.
An internal investigation has been appointed by Nvidia's outside directors, while the FBI has launched a separate inquiry.
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