Nvidia scandal: Singapore firm Megaspeed launches investigation into chip export – Here’s why

Megaspeed International on Thursday (Nov 12) said that it was investigating its chip export practices after allegations that a former executive was spying for China. This comes amid controversy involving Nvidia CEO Jensen Huang’s affair with Alice Huang, who is suspected of being a Chinese spy. While China has denied the allegations, concerns over national security have been raised. Meanwhile, Nvidia’s board is reportedly weighing whether to remove Jensen following the scandal.

In a statement, Megaspeed CEO Tan Yong Pong said, “Megaspeed has retained a leading US law firm to lead a comprehensive census of its graphics processing units (GPUs) and independently verify its export control compliance practices.”

The statement added, “Megaspeed takes its compliance obligations under US export control laws extremely seriously. Compliance is a fundamental priority for the company, and Megaspeed is committed to working constructively and transparently with the US government.”

What is the Nvidia controversy?

Controversy began after reports on the Nvidia CEO’s alleged relationships with Alice Huang, a former Megaspeed executive. Alice has been accused of spying for China by US intelligence. Jensen has admitted being unfaithful to his wife, while NVIDIA’s board has launched an independent investigation into the matter. The company has said it has no reason to believe its trade secrets or US national security information were compromised. However, the allegations have raised questions about national security and Washington’s handling of chip exports.

The Singapore-based company has bought more than $4.8 billion worth of NVIDIA AI chips since June 2024 and is under investigation over suspected diversion of restricted chips to China.

According to the Bloomberg, Alice is no longer in the US and has returned to China. US intelligence agencies have reportedly been tracking Alice for the past two years, uncovering alleged links to Beijing. Investigators suspect she was recruited by China's Ministry of State Security to obtain information about NVIDIA's most advanced chips. She is also accused of influencing Huang to sell billions of dollars' worth of advanced chips to Megaspeed, the Singapore-based firm where she served as director. US investigators believe the company may have been used as a channel to divert NVIDIA chips to China.