China Slams 'Smear Campaign' Over NVIDIA CEO Spy Allegations
China slams reports that NVIDIA CEO Jensen Huang was targeted by a spy operation involving a Chinese businesswoman as a smear campaign.
The Chinese government has vehemently denied reports suggesting that NVIDIA CEO Jensen Huang was the target of a sophisticated intelligence operation. Beijing has dismissed the claims as "groundless speculation" and a deliberate "smear" aimed at tarnishing the country's reputation.
Beijing's Firm Denial
Chinese Foreign Ministry spokesperson Guo Jiakun addressed the controversy on Monday, reacting to reports that a Chinese businesswoman close to Jensen Huang was allegedly funneling intelligence to Beijing. When questioned about the allegations, which were based on information from American intelligence agencies, Guo was blunt, labeling the narrative a smear campaign.
The denial was further amplified by Yu Jing, the spokesperson for the Chinese Embassy in India, who shared the Foreign Ministry's response on X. Yu reiterated that China "firmly rejects" the so-called spy allegations, insisting that the claims lack any factual basis.
The Core of the Controversy
The storm began following a report by The New York Times, which detailed a highly classified memo drafted by US Secretary of State Marco Rubio. The memo, circulated among senior Trump administration officials earlier this year, warned of a close relationship between Jensen Huang and Alice Huang, a Chinese businesswoman.
According to US intelligence agencies, Alice Huang is suspected of being recruited by China's Ministry of State Security. The intelligence reportedly stems from electronic surveillance of Alice Huang, who serves as a senior executive at Megaspeed, a firm headquartered in Singapore.
The Megaspeed Connection
US officials are not just concerned about personal relationships but also about the illicit flow of technology. They suspect that Megaspeed has been used as a conduit to smuggle restricted NVIDIA semiconductors into mainland China.
Industry records have raised red flags, showing that Megaspeed purchased roughly USD 2 billion worth of NVIDIA products. This massive expenditure is seen as suspicious given the company's limited local footprint and its operation from a simple storefront office. While Megaspeed builds data centers across Southeast Asia, it also leases computing capacity to the Chinese internet giant Alibaba.
NVIDIA Launches Independent Probe
In response to the gravity of the allegations, NVIDIA's board of directors announced on Sunday that it has launched an independent investigation. The inquiry will be overseen by a committee of independent directors and supported by outside legal counsel.
In an official corporate release, NVIDIA stated:
“The Board prioritises US national and economic security, which is paramount to the interests of NVIDIA and its shareholders. While the Board has no reason to believe that either national security or NVIDIA secrets were compromised, the Board's inquiry will examine all available information. Jensen fully supports the review and has committed to cooperating with it.”
The board emphasized its continued confidence in Jensen Huang's leadership while promising to provide updates as the investigation unfolds.