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NVIDIA CEO Jensen Huang's reported relationship with Chinese businesswoman Alice Huang, allegedly linked to Beijing's intelligence network, helped facilitate at least USD 7.5 billion worth of chip shipments to Chinese companies, according to a report by The Information. The report, citing two people familiar with Alice Huang, said she used her connections with NVIDIA and its distributors to secure supplies when orders for chips restricted under US export controls stalled.
The development has drawn attention to NVIDIA's business relationships in China, particularly as US authorities continue to scrutinize the movement of advanced artificial intelligence (AI) processors into the country.
According to The Information, Alice Huang, along with her husband and sister, established a network of companies across China and Singapore to acquire NVIDIA processors. At the center of this network was Shanghai Century Litong, a China-based company founded in June 2023.
The company secured preferred cloud partner status with NVIDIA by October 2023, giving it priority access to the chipmaker's products, the report said.
When orders for NVIDIA chips subject to US export restrictions faced delays, Alice Huang reportedly used her connections within NVIDIA and its distribution network to arrange supplies. This helped move approximately 240,000 H100, H200 and some A100 chips into China.
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The report identified Alibaba, Tencent, Megaspeed and Shanghai Century Litong in connection with the developments. However, these companies were not immediately available for comment outside regular business hours.
NVIDIA did not immediately respond to a Reuters request for comment.
The reported shipments have raised questions about the effectiveness of US export restrictions on advanced AI processors and the channels through which Chinese companies may have accessed restricted hardware.
The allegations come as NVIDIA faces scrutiny over whether a foreign intelligence operation targeted its 63-year-old chief executive. The company's board has launched an internal investigation, while the Federal Bureau of Investigation (FBI) is also examining the issue.
NVIDIA shares closed more than 4% lower on Monday following the developments.
Jensen Huang has told NVIDIA employees that he was unfaithful to his wife but did not disclose details about the relationship.
The investigations are expected to examine the circumstances surrounding the reported relationship and whether it exposed NVIDIA or US national security interests to potential risks.