Culper says Nvidia linked to six more Megaspeed-like firms

A short seller's report from six months ago is getting new attention after Nvidia ↘ 6.37% CEO Jensen Huang admitted to an affair with Alice Huang, a former executive at Megaspeed whom U.S. officials believe is a Chinese intelligence asset. Culper Research published "Nvidia: The China Problem" on May 13. In it, the firm called the pair's relationship "uncomfortably close" and argued that Nvidia still depended on Chinese demand that reached it through Southeast Asian intermediaries.moneycontrol.com+1

On Sunday, November 8, Nvidia's board said it had opened an independent investigation, overseen by a committee of independent directors working with outside counsel. The investigation follows reports that Huang "has been the target of a foreign intelligence effort." The board said it had "no reason to believe that either national security or NVIDIA secrets were compromised". In a memo to staff, Huang apologized for being unfaithful to his wife and said he would cooperate fully. He did not name the woman.theverge.com+1

What Culper alleged

The 40-page report estimated that more than 20% of Nvidia's fiscal 2026 compute revenue was still driven by China, even though the company had said that business went to zero after U.S. restrictions in April 2025. Culper said documents suggested Megaspeed was secretly financed by Alibaba ↘ 2.59% through apparent shell companies. It also pointed to $2.9 billion in refundable deposits from an undisclosed source. The report did not show an affair or spying.biz.chosun.com+2

Founder Christian Lamarco told MarketWatch News Corp ↗ 1.23% that his team had found circumstantial evidence linking Nvidia to at least six other Southeast Asian companies with red flags similar to Megaspeed's. "We were confident in the research initially, and we're still confident in it now," he said. Megaspeed has denied wrongdoing.marketwatch.com+1

Stock slides, traders pile in

Nvidia shares fell as much as about 9% on Monday, November 9, and closed down 4.3%. The broader market rose the same day. The GraniteShares 2x Short NVDA Daily ETF and the GraniteShares 2x Long NVDA Daily ETF ↘ 12.85% were among the most actively traded ETFs. The short fund gained about 12% while the long fund fell by a similar amount.businessinsider.com+1

Washington's scrutiny

The Justice Department's National Security Division is investigating Megaspeed over possible violations of export rules, according to CBS News. The New York Times ↘ 0.01% reported on Monday that an earlier Commerce Department investigation into Megaspeed was halted late last year after Nvidia contacted the department. The Republican chairs of three House committees have asked Huang to attend a closed-door briefing on November 18. China has called the allegations "baseless and purely slanderous smears".cnbc.com+3