Nvidia intervened in US probe of Megaspeed amid Jensen Huang's affair with alleged spy, report says

Nvidia CEO Jensen Huang’s affair with alleged Chinese spy Alice Huang has turned the tech industry over its heads. Last year, when agents at the US Commerce Department were investigating Singapore-based Megaspeed for allegedly smuggling AI chips to China, a single email reportedly put months of work to a halt. That email was reportedly sent by Nvidia.As per a report from the New York Times, Nvidia’s general counsel, Tim Teter, sent an email to agents investigating Megaspeed in August last year. In the email, Teter named Jeff Kessler, a senior department official nominated by President Donald Trump. The Nvidia general counsel claimed that Kessler had permitted Nvidia to approach the agents about the case.This report comes just a day after Nvidia CEO Jensen Huang admitted having an affair with Alice Huang. While Alice is no longer at Megaspeed, it is believed that her close relationship with Jensen may have allowed Beijing to get sensitive information and AI chips.Reports also state that Donald Trump was made aware of the affair and the potential espionage link as early as last year. US DoJ took over Megaspeed caseAfter the Commerce agents declined Nvidia’s request for a meeting, they reportedly forwarded the email exchange to Kessler. He responded hours later, stating that they should continue handling the case strictly by the book. The report added that Kessler had neither ordered employees to disclose information nor directed them on meetings. It is unclear why Nvidia reached out to the agents on this case.But the contact raised concerns because Nvidia had not been ruled out as a possible subject of the investigation. The matter was disclosed to partner law enforcement agencies, after which the US Department of Justice (DoJ) asked the Commerce Department to pause its work. The DoJ is now conducting a criminal inquiry into Megaspeed. Nvidia spokesman John Rizzo told NYT that the company consults officials “to answer their questions, provide information we have gathered from the field, request their guidance and instructions and ask whether they have any follow-ups.”Megaspeed began importing billions of dollars’ worth of advanced Nvidia AI equipment into Malaysia in 2024 while developing data centres across Southeast Asia for Chinese clients, including Alibaba. Such activity is legal, but US officials were concerned that some chips had been illegally routed to China. Megaspeed is conducting an internal investigation and has offered to cooperate with US authorities.Going by previous reports, US President Donald Trump was likely aware of Jensen Huang’s relationship with Alice Huang. It is said that Trump was briefed on the situation last year, but decided not to take action at the time.Though the US president said on Monday that the FBI was investigating the affair between the Nvidia chief and Alice. Donald Trump has continued to defend Jensen. "I asked him that question, 'Did you have any idea she was a spy?' He said 'I had no idea she was a spy' and I really believe him," he told reporters.Meanwhile, Beijing rejected the allegations of Alice being a spy, calling them “entirely groundless, speculative and intended to smear and malign China.”Nvidia is conducting an internal investigation to examine whether sensitive information was transferred through this affair. Though the company says there are no national security concerns as of yet. Jensen Huang remains CEO for now, and is cooperating in the investigation.- Ends