Nvidia has launched an internal investigation after CEO Jensen Huang acknowledged a personal relationship with Alice Huang, an executive at Singapore-based cloud firm MegaSpeed who is suspected by US intelligence of having ties to Chinese state security. The probe also examines MegaSpeed's massive chip purchases and whether advanced Nvidia hardware was improperly diverted to China in violation of US export controls, though Nvidia's board has affirmed its support for Huang as he continues to lead the company.

Nvidia has launched an internal investigation after CEO Jensen Huang acknowledged a personal relationship with Alice Huang, an executive at Singapore-based cloud firm MegaSpeed who is suspected by US intelligence of having ties to Chinese state security. The probe also examines MegaSpeed's massive chip purchases and whether advanced Nvidia hardware was improperly diverted to China in violation of US export controls, though Nvidia's board has affirmed its support for Huang as he continues to lead the company.

Nvidia has launched an internal investigation after CEO Jensen Huang acknowledged a personal relationship with Alice Huang, an executive at Singapore-based cloud firm MegaSpeed who is suspected by US intelligence of having ties to Chinese state security. The probe also examines MegaSpeed's massive chip purchases and whether advanced Nvidia hardware was improperly diverted to China in violation of US export controls, though Nvidia's board has affirmed its support for Huang as he continues to lead the company.

With Nvidia opening an probe into claims that CEO Jensen Huang was a "target of a foreign intelligence effort", a Singapore-based cloud computing firm MegaSpeed has come under scanner of chip deals.

This comes after Huang acknowledged to the Nvidia board that he had been intimate with MegaSpeed executive and Chinese citizen Alice Huang and that he had been unfaithful to his wife.

"I support the investigation and will cooperate fully. I love our country and our company. I am committed to protecting NVIDIA and supporting America’s national security. I am proud and grateful to be an American," he said.

US intelligence officials alleged that Alice is a Chinese intelligence asset, as per a New York Times report. Alice, who was previously a television reporter in China, allegedly has ties to China's Ministry of State Security. 

MegaSpeed has been one of Nvidia's major customers in Southeast Asia, purchasing more than $4.8 billion worth of Nvidia chips over the past two years, according to the NYT.

The company is facing probes regarding whether the Nvidia chips acquired by it were improperly diverted to China to bypass US export controls.

Who is the owner of MegaSpeed?

MegaSpeed is owned by Singaporean national Tan Yong Pong alias James Tan through his company Swiftdata. MegaSpeed was originally spun off from Chinese gaming and cloud firm 7Road Holdings Ltd with links to state-backed investors.

Later 7Road sold MegaSpeed to Alice Huang's company based in British Virgin Islands. She was the managing director of Megaspeed between March and November 2023.

In November 2023, the company was sold to Tan Yong Pong's Singapore shell company Swiftdata. The company is now under a widening investigation in Singapore and the US.

How did MegaSpeed respond?

Rejecting allegations about illegal export of Nvidia chips to China to bypass US export restrictions, MegaSpeed said the news report contained "misleading information and incorrect insinuations". MegaSpeed warned that it would mull legal action to hold the media outlet accountable for the "misleading nature of the article."

"We want to be absolutely clear: over the past six months, our company has undergone multiple on-site inspections and reviews by key institutions, including the Bureau of Industry and Security of the US Commerce Department, the Ministry of Investment, Trade and Industry of Malaysia, and Nvidia," it said.

"Thorough investigations have confirmed that there has been no evidence of any violations concerning the illicit transfer of chips or any illegal activities, and this demonstrates that we are a compliant and legitimate company," it added.

What did Nvidia say?

While saying it has "no reason to believe" that either national security or Nvidia secrets were compromised, Nvidia's board said its investigation would examine all available information.

"Today's news will not slow Nvidia," company spokesperson John Rizzo stated. "Jensen is committed to continuing to lead Nvidia as CEO without interruption."

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