Abstract:
With Nvidia CEO Jensen Huang recently involved in high-profile controversies, a short-selling report released earlier this year has once again attracted attention from the outside world. The report shows that about six months before the current turmoil broke out, Culper Research, a US short-selling research organization, had questioned the close relationship between Huang Renxun and a corporate executive who was later suspected of being a Chinese spy.
According to relevant information, this executive is Alice Huang, a manager of Megaspeed, a Singaporean chip procurement company. The company is one of the important purchasers of Nvidia chips. Recently, U.S. intelligence agencies have suspected that Alice Huang was recruited by the Chinese government in an attempt to collect information related to Huang Renxun and influence its stance on the export restrictions on advanced artificial intelligence chips from the United States. Huang Jenxun admitted over the weekend that he had had an extramarital relationship with the other party, and Nvidia subsequently announced that it had launched a formal investigation into the relationship. Although the two have the same surname, they are not related.
What has attracted renewed attention this time is a research report on Nvidia and its Chinese business issues released by Culper Research on May 13. When the agency investigated the business ties between Megaspeed and Nvidia, it specifically mentioned the unusually close dealings between Jen-Hsun Huang and Alice Huang.
The report described the relationship between the two as "uncomfortably close" and noted that Huang had been seen attending parties and social events with Alice Huang on many occasions. The report also said that some Nvidia employees even privately speculated whether there was a special relationship between the two.
In addition to questioning the interpersonal relationship, Culper Research also made another more controversial speculation. The agency believes that after the United States imposes export restrictions on high-end chips to China, some business originally destined for the Chinese market may be redirected to Southeast Asia, and Megaspeed, as a large local chip purchaser, plays a key role in this process.
The report further claims that Megaspeed may receive financial support from Chinese technology giant Alibaba through a multi-layered shell company. The financial data cited by it shows that Megaspeed's total liabilities and shareholders' equity have surged from approximately US$33 million at the end of 2023 to approximately US$3 billion at the end of 2024, a considerable part of which is represented by refundable deposits from undisclosed sources.
At the same time, the latest report from the Financial Times quoted relevant documents as saying that Alibaba had indeed provided loans to Megaspeed through its subsidiaries. This situation was regarded as additional evidence to question the flow of some funds.
However, the report also pointed out that, as a short-selling institution, Culper Research itself can obtain financial benefits from negative accusations against target companies. Therefore, its accusations of illegal chip transshipment and related business arrangements have not yet been independently verified, and the outside world is still cautious about these claims.
Nevertheless, as the NVIDIA investigation unfolds and more details about the relationship between Jen-Hsun Huang and Alice Huang gradually come to light, the short-selling report that was ignored by the market six months ago is re-entering the public eye, and NVIDIA is facing more stringent scrutiny on its business layout and compliance issues in China.
Comments