Nvidia Faces Scrutiny Over Alleged $7.5 Billion Chip Diversion to China

Nvidia is facing renewed scrutiny after reports alleged that at least $7.5 billion worth of its AI chips—including restricted H100, H200, and A100 processors—were funneled into China through a network reportedly linked to CEO Jensen Huang’s alleged affair partner, Alice Huang.

According to investigative reporting by The Information, Alice Huang, a Chinese businesswoman suspected of having links to Beijing’s intelligence network, allegedly worked with her husband and sister to operate companies across China and Singapore. The network reportedly procured advanced processors beginning in 2023.

Roughly 240,000 restricted chips are said to have been moved into China through the network, raising questions about potential U.S. export-control violations.

Nvidia’s board has launched an independent investigation conducted by outside counsel. The company has stated that it has no reason to believe national security or company secrets were compromised.

Other reported developments include:

• Nvidia stock fell more than 5% for a second consecutive day on November 11.
• The FBI confirmed it is looking into the matter.
• Republican lawmakers called on Huang to testify before Congress on November 18.

The allegations could intensify debate over U.S. semiconductor export policy toward China.

Source: Yahoo Finance – Nvidia Scandal Live Updates