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Bloomberg: Nvidia chips have reached China

Bloomberg: Nvidia chips have reached China
Qiyas summary

A Bloomberg report reveals the smuggling of advanced Nvidia chips to China via companies linked to Lisa Su and her partner Jensen Huang amid his resignation.

Translated by Qiyas from الجريدة — Original source

Bloomberg reported on Friday that advanced chips designed by Nvidia and subject to U.S. restrictions had been illegally smuggled into China through a company founded by Alice Huang, with whom Nvidia’s former CEO, Jensen Huang, had an extramarital affair.

According to documents reviewed by Bloomberg, these chips were used in a data center in Shanghai, some of whose servers were sold to Aperia Cloud Services, a Singapore-based commercial partner of Nvidia.

However, the servers did not remain in the Southeast Asian city-state. Documents show they were transferred via Megasppeed, a company founded by Alice Huang, and smuggled into China.

On Thursday, Jensen Huang resigned as CEO of the artificial intelligence giant Nvidia following revelations of two extramarital relationships, one with Alice Huang, whom U.S. intelligence accused of spying on behalf of China.

While Beijing firmly denied ordering Alice Huang to conduct espionage, the United States warned on Friday against imposing additional restrictions on semiconductor exports in the wake of the controversy surrounding Nvidia.

Meanwhile, billionaire Liu Kuo Guang, an investor in Nvidia, expressed support for the former CEO, stating he would not increase his stake in the company under new leadership.

Bloomberg quoted Liu Kuo Guang in a text message saying, “I will not inject any additional investments without Jensen,” noting that he had invested approximately $1.3 billion in Nvidia shares.

In a series of posts on the platform X, Liu Kuo Guang described the former CEO as the “top creator” and acknowledged that although Huang had made some mistakes, “rewards should be prioritized” over “punishments.”

He wrote in one post, “America is a civilization built on creators. We value and celebrate creators. Creators must come first, then regulators, then distributors—in that order. Today is a sad day! We prioritized regulators first. Yes, Jensen made mistakes, but he is human.”

These posts came after Huang’s sudden ouster from Nvidia, following reports of his involvement in three extramarital relationships, including one with a woman suspected of spying for China. Huang’s departure ended a decades-long tenure leading a company that plays a pivotal role in the expansion of artificial intelligence technologies and their broader impact on the global economy.

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