A May post by short-selling firm Culper Research, which said Nvidia had a "significant China problem", has resurfaced after Nvidia's board opened an independent investigation into CEO Jensen Huang.
The board's inquiry relates to reports that he was the target of a foreign intelligence effort and his relationship with Alice Huang, an executive at Nvidia customer Megaspeed.
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Culper disclosed that it was betting against Nvidia's stock, and its allegations are unproven.
What Culper Said
On 13 May, Culper posted: "We believe Nvidia has a significant China problem." Its 40-page report alleged that over 20% of Nvidia's FY2026 compute revenue was driven by China through illegal diversion and Southeast Asian intermediaries, despite Nvidia saying its China compute business fell to zero after April 2025 US trade curbs.
The report centred on Singapore-based Megaspeed, Nvidia's largest buyer in the region. Culper alleged Megaspeed was secretly financed by Alibaba through shell companies. It also named Malaysia's Speedmatrix and Taiwan's Giga Computing as intermediaries.
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Claims About Huang
In its thread, Culper cited a Bloomberg report that Bain Capital-backed Bridge Data Centres had dropped Megaspeed as a tenant. It also claimed that Huang accompanied Alice Huang "at every step" of his visits to Megaspeed facilities, with Alibaba representatives present, citing a current Megaspeed employee.
Culper said the two attended a party in June 2024 and dined together in May 2025, soon after US trade restrictions. Benzinga reported the report called the relationship "uncomfortably close".
How Nvidia Responded
Nvidia told The New York Times that Megaspeed is owned and operated by a company based outside China, with no Chinese shareholders.
Culper argued that wording covers ownership but not financing. Nvidia has said Megaspeed was examined and no diversion was found, and Megaspeed has not been charged. Megaspeed, Alibaba and Nvidia have not publicly confirmed the Alibaba financing claim. Nvidia shares rose about 3% on the day of the report.
ALSO READ | Can Nvidia Board Remove Jensen Huang Over Affair? Five Scenarios That Could Decide CEO's Future
What Has Happened Since
On 29 October, the Times reported that US intelligence had concluded Alice Huang was gathering information for Beijing. China dismissed the claims as "groundless speculation".
On Sunday, Nvidia's board announced its investigation and Huang told staff he had been unfaithful to his wife. The board said it had no reason to believe national security or company secrets were compromised.
Culper's report did not allege an affair.
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