Huang calls Nvidia’s dealings with Megaspeed ‘normal and not unusual’ as the company rejects the spy report

Nvidia chief executive Jensen Huang defended the company’s business with Singapore-based Megaspeed International, calling it ‘normal and not unusual’^1,2. Huang said Nvidia verified that Megaspeed had not shipped its AI processors to China in violation of the law⁴. Megaspeed International is the Singapore-based firm at the centre of the US spying probe^1,2.

Nvidia said earlier diversion allegations against Megaspeed were investigated and disproven, and that Huang’s customer interactions are routine⁵. That matches its description of such meetings with customers as routine⁸. The company dismissed claims that Huang was targeted by a Chinese asset, saying the allegations were thoroughly investigated and debunked³.

The statements respond to a report that US investigators were probing a suspected Chinese spy’s access to Huang⁸.

Why it matters to investors

Nvidia stock declined on Thursday, with a competition probe presenting a new AI concern⁶. Senator Elizabeth Warren said Huang was reportedly ‘targeted’ by a suspected Chinese spy whose Singapore-based firm bought billions in AI chips⁶. The suspected spy’s access to Huang is being examined amid AI chip export concerns⁸.

Warren used the case to urge AI export controls⁷. The probe centres on AI chip technology and Nvidia’s ties to US export controls⁸. Nvidia said such meetings with customers are routine⁸.

The company’s defence rests on two points: that Megaspeed did not ship processors to China illegally⁴, and that earlier diversion allegations were already disproven⁵. Its critics focus on the scale of the firm’s chip purchases⁶ and on export controls⁷.

What to watch

The first marker is whether lawmakers turn Warren’s call into action on AI export controls⁷. The second is the course of the US probe into the suspected spy’s access to Huang⁸.

The third is Nvidia’s share price, which declined as the competition probe added a new concern⁶. The fourth is Megaspeed itself, whose dealings Huang has described as normal^1,2 and which Nvidia says was cleared of earlier diversion allegations⁵.

Nvidia has rejected the central claims of the report outright³, while Huang has defended the business relationship in public². Nvidia’s response has come in several statements, from Huang’s own defence² to company statements that the allegations were investigated^3,5. Huang pointed to Nvidia’s own verification of Megaspeed’s shipments⁴.