2 scandals, 1 destination—Why Nvidia can’t shake China smuggling allegations

·2026.11.12 02:01

Key point

Two separate investigations into $2.5 billion in servers and Nvidia's largest Southeast Asian customer challenge CEO Jensen Huang's claims that no chips are being diverted to China.

Details

Two major scandals involving alleged chip diversion to China have emerged, undermining Nvidia CEO Jensen Huang's repeated assertions that there is no evidence of such activity.
The first case involves $2.5 billion in computer servers equipped with Nvidia chips under scrutiny at Super Micro, a company led by a longtime friend of Huang and a close Nvidia partner.
A second investigation targets Megaspeed, Nvidia's largest Southeast Asian customer, for alleged chip diversion, with reports indicating potential overlap between the two cases.
The dual scandals have caused significant reputational damage to Nvidia, its shareholders, and its leadership, though no direct connection between the two incidents has been confirmed yet.

nvidia ai-hardware super-micro chip-smuggling megspeed china-export-controls

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