Alice Huang, a woman suspected of espionage for China who became linked to Nvidia's former chief executive Jensen Huang, departed her executive position at Megaspeed in August 2025, the Singapore-based company announced. The departure came months before the relationship between Jensen Huang and Alice Huang became public, triggering investigations across multiple jurisdictions and raising concerns about potential breaches of US export controls on advanced semiconductors.
Jensen Huang stepped down as chief executive of Nvidia after his alleged affairs with Alice Huang and one of his employees came to light. According to BBC News, the scandal has reverberated through Silicon Valley and the political establishment, with particular focus on whether high-end AI chips may have reached China in violation of American restrictions.
Megaspeed, which operates as the largest buyer of Nvidia chips in south-east Asia, announced on Sunday that it had initiated an internal investigation into its operations. The company stated it was aware of reports making claims about its business, supply chain and global operations but said these assertions lacked verifiable evidence. Megaspeed emphasised that it conducts legitimate and lawful business and has retained external legal counsel to conduct a thorough internal investigation.
What role did US officials play in oversight?
US Treasury Secretary Scott Bessent publicly criticised the Commerce Department's handling of export controls, telling CNBC on Friday that multiple agencies had supported placing Megaspeed on the entity list—which restricts US trade with overseas firms and individuals—for months, but that Commerce held the authority to make that decision. Bessent stated that Commerce would need to explain its internal process for handling the matter.
Commerce Secretary Howard Lutnick has been summoned to testify before the Senate Banking Committee next month regarding his department's role in permitting Nvidia to export its advanced chips. Congressional committees have also requested that Lutnick and his department preserve all records relating to Nvidia and Jensen Huang.
What are the specific allegations against Megaspeed?
Megaspeed is suspected of providing backdoor access to Nvidia chips to Chinese companies through its data centres located in Malaysia, Indonesia and Thailand. According to AFP, Malaysia has launched an investigation into Megaspeed's subsidiary Speedmatrix to determine whether chips imported into Malaysia were subsequently exported elsewhere. Trade records cited by the New York Times indicate that Speedmatrix purchased at least $4.8 billion in advanced AI equipment, including systems containing Nvidia chips, between June 2024 and February 2026.
During a 2025 inspection of a Speedmatrix data centre, a US trade official reportedly discovered unopened Nvidia chips, though officials did not at that time possess conclusive evidence of diversion to unauthorised destinations.
What is Megaspeed's response to the allegations?
Megaspeed has stated that it designs and maintains global operational and supply-chain control frameworks to comply with all applicable laws and regulatory regimes, including US export control requirements and local jurisdiction rules in every market where it operates. According to Reuters, Megaspeed said it cooperated with inspections by the US Commerce Department's Bureau of Industry and Security and hired a US law firm to inventory its GPUs and independently verify export-control compliance.
Singapore does not prohibit the transfer of advanced AI chips to companies abroad, but such moves can breach US export controls. Singapore's government has stated that while it does not enforce unilateral export controls imposed by other countries, it expects all companies within its jurisdiction to respect such regulations.
What is known about Alice Huang's status?
According to NBC News, Singapore said Alice Huang was barred from re-entering the country in February 2026 and received a stern warning for knowingly providing police with inaccurate information to downplay her role at Megaspeed. Singapore stated that she was not investigated for espionage. Singapore's investigation into Megaspeed began in February 2025 and includes possible false declarations related to server purchases, with investigations into Megaspeed and six other individuals continuing.
Singapore's Ministry of Home Affairs also reported that requests for cooperation from US authorities had gone unanswered. China has denied that Alice Huang is a spy and has warned the United States against using the scandal as a pretext for imposing a technological blockade on AI technology.
What is the broader context of this scandal?
The affair scandal emerged after Nvidia launched an independent investigation following the revelation of Jensen Huang's relationship with a suspected Chinese spy. The company stated it had no reason to believe national security information or trade secrets were compromised. Subsequently, Nvidia engaged prominent law firm Wachtell, Lipton, Rosen & Katz to investigate the alleged affair, as the company faced mounting national security scrutiny.
Jensen Huang stepped down as CEO after the affair revelations, triggering congressional scrutiny and bipartisan calls for stricter chip export controls to China. A proposed investor class action filed in federal court in San Jose alleges that Nvidia and Jensen Huang misled shareholders by concealing the relationship and related national-security concerns.
The scandal has also exposed Singapore's precarious balancing act between the United States and China, threatening the city-state's carefully cultivated neutral position in the technology sector.
What happens next?
Singapore's investigation into Megaspeed remains ongoing, with authorities continuing to examine the company's operations and those of related entities. Megaspeed has indicated it will review reporting on the matter and communicate further with stakeholders as appropriate. The company faces continued scrutiny from multiple jurisdictions as investigations proceed.
