China Denies US Claims of Espionage Operation Targeting Nvidia CEO

China has dismissed allegations of a Chinese espionage operation aimed at Nvidia's chief executive, Jensen Huang, labeling the claims as "groundless speculation." The assertion comes after a report by The New York Times, citing U.S. intelligence officials, suggested that a Chinese businesswoman linked to a Singapore-based data center firm was gathering information for Beijing on the U.S. chip-making giant.

According to the report, the businesswoman, identified as Alice Huang (no relation to Jensen Huang), is under investigation for potentially diverting advanced Nvidia AI chips to China. U.S. intelligence agencies reportedly monitored Alice Huang and concluded she was acting on behalf of the Chinese government. Surveillance allegedly revealed communications between Alice Huang and Jensen Huang through a process known as "unmasking."

It remains unclear what specific information Alice Huang, also known as Huang Le, may have passed to Beijing, its value, or when the alleged intelligence gathering began. Nvidia stated that its interactions with Alice Huang were routine business engagements. John Rizzo, a spokesperson for Nvidia, commented that customers like Megaspeed "receive ordinary business information - not sensitive Nvidia trade secrets - and zero information relevant to national security."

Nvidia also noted that allegations of the Singaporean company smuggling chips to China "were thoroughly investigated and debunked last year." Megaspeed confirmed it takes the allegations seriously and has appointed external legal advisors to conduct an internal investigation, adding that it has informed the U.S. government of its willingness to cooperate.

The report surfaces amidst persistent U.S. concerns regarding China's access to advanced computing technology, considered vital for developing artificial intelligence. Jensen Huang has previously argued that enabling Nvidia to sell more products to China is important for maintaining U.S. competitiveness in the global AI industry. However, Washington has imposed restrictions on exports of the most advanced Nvidia chips to China since 2022, citing national security risks and the potential for the technology to bolster China's military capabilities.

U.S. officials have reported intercepting several firms involved in illegally trafficking these chips across the Chinese border and have investigated whether companies operating through third countries are facilitating Chinese businesses' access to restricted technology. Nvidia maintains that it complies with all applicable export laws and has seen no evidence of its chips being smuggled into China.