China denies allegations of spy operation targeting Nvidia CEO

Allegations surfaced that a Chinese businesswoman was collecting data for Beijing concerning the prominent American chip manufacturer, Nvidia, according to reporting by The New York Times, which cites US intelligence sources.

The Chinese government has firmly dismissed these claims of a spy operation targeting Nvidia's CEO, Jensen Huang, labeling the assertions as "groundless speculation."

Reports indicate that Alice Huang, a businesswoman from China who is connected to the Singapore-based data center firm Megaspeed, was reportedly gathering intelligence on the major US chip maker on behalf of Beijing. The Times' report further noted that Alice Huang has no familial connection to Jensen Huang.

This individual was reportedly under scrutiny regarding the potential unauthorized movement of sophisticated Nvidia AI chips into China, and she had cultivated a close association with Jensen. Nvidia maintained that their exchanges were merely standard business dealings, while Beijing countered by accusing Washington of making an effort to damage China's reputation. Alice Huang offered no comment when approached by the publication.

The BBC reached out to Megaspeed and the White House seeking comment on the matter. Unnamed sources cited by The New York Times revealed that US intelligence agencies had been tracking Alice Huang and ultimately concluded she was acting under the direction of the Chinese government. Surveillance apparently uncovered communications between Alice Huang and an American citizen, who was later identified as Jensen Huang through a procedure known as "unmasking."

The precise nature of the information allegedly shared by Alice Huang—who is also known as Huang Le—to Beijing, the value of that data, or the timeline when she supposedly commenced intelligence gathering remains unknown.

During a routine briefing on Friday, Guo Jiakun, the spokesperson for China's foreign ministry, stated, "The report in question is based on groundless speculation and is nothing more than an attempt to smear China."

This report surfaces amid ongoing apprehension in the United States regarding China's acquisition of advanced computing technology, which is deemed vital for developing artificial intelligence systems. Jensen Huang has advocated for allowing Nvidia to sell a greater quantity of its products to China, arguing this is crucial for sustaining American competitiveness within the worldwide AI sector.

However, since 2022, Washington has placed limitations on the export of Nvidia's most advanced chips to China, citing risks to national security and the potential for this technology to bolster China's military capabilities. Although, at times, restrictions have been relaxed during the Trump administration, US officials have reported apprehending several companies involved in illegally moving these chips across the Chinese border. Furthermore, they have investigated whether entities operating through third nations are assisting Chinese enterprises in obtaining restricted technology.

John Rizzo, a representative for Nvidia, responded to the Times' allegations by stating, "Jensen's interactions with Ms Huang are not unusual or unexpected." He clarified that customers such as Megaspeed "receive ordinary business information - not sensitive Nvidia trade secrets - and zero information relevant to national security." Rizzo also asserted that the claims suggesting the Singaporean firm was smuggling chips into China "were thoroughly investigated and debunked last year."

Megaspeed informed the newspaper that its current management took the accusations seriously and had retained external legal advisors to conduct an internal review. Additionally, the company mentioned that it notified the US government of its readiness to cooperate. The extent of Alice Huang's ongoing involvement with Megaspeed is presently unclear.