Nvidia CEO's affair with a Chinese spy may help China obtain 240,000 American chips worth at least $7.5 billion.
Alleged Chinese spy Alice Huang, who has a close relationship with Nvidia CEO Jensen Huang, may have arranged the supply of chips to circumvent US restrictions. Details:
Alice Huang, along with her husband and sister, created a network of companies in China and Singapore to obtain Nvidia chips.
One of the companies, received the status of a privileged cloud partner of Nvidia with preferential access to chips.
After the US export restrictions were introduced, Huang allegedly used connections with Nvidia and its distributors to resume shipments.
About 240 thousand H100, H200 and A100 chips could have reached China. Some have been used by Alibaba, Tencent and small Chinese AI labs.
After the affair became known, Nvidia lost 400 billion dollars in capitalization: the shares immediately fell by 4.3%, and then by about 5%.
Within a month, Nvidia lost 31% of its market value, or about $2 trillion(!). Since the beginning of the year, shares have fallen 11%, and will lose all their gains in 2026.