China-linked investors were pitched Nvidia GPU access for south-east Asia data centre deal

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Highlights

Alice Huang and Kang Wei pitched China-based investors on a south-east Asia data centre project, claiming 'no problem securing GPUs' and linking Alibaba as a client.
Alibaba's Singapore subsidiary Apex lent money to Megaspeed's Malaysian unit in June 2024, enabling Megaspeed's balance sheet to swell from $33 million to $3 billion this year.
Nvidia shares dropped 5 per cent in pre-market trading Monday after its board launched an investigation into reports of Jensen Huang's affair and alleged Chinese espionage links.

Investor pitch and commercial links

As reported by the Financial Times, Alice Huang and her business partner Kang Wei sought funding from China-based investors for the project, telling at least one investor present that they had "no problem securing GPUs" and that Alibaba was a client tied to the venture.

Under current U.S. export controls, Chinese companies can legally lease data centre capacity outside China, but Chinese ownership of the underlying assets, largely advanced Nvidia GPUs, is not allowed. Huang did not disclose any close relationship with Jensen Huang during the pitch or in her regular business dealings.

Megaspeed, a Singapore-based Nvidia customer where Alice Huang was briefly registered as an executive in 2023, is under investigation in multiple jurisdictions over alleged chip smuggling. The company strongly denies any illicit activity involving chips.

Company documents show Alibaba, through its Singapore subsidiary Apex Enterprise Solutions, lent money to Megaspeed through its Malaysian unit Speedmatrix in June 2024. Under that agreement, Speedmatrix pledged its entire business as collateral, and Megaspeed's balance sheet expanded from $33 million to $3 billion during 2024, much of it tied to dealings by subsidiaries.

Two people with knowledge of the matter said Alibaba has been Megaspeed's anchor customer for its south-east Asia cloud service from the outset and remains its largest client. One of them said Nvidia first met Megaspeed to discuss possible procurement after the company showed its leasing contract with Alibaba.

Espionage allegations and market fallout

Alice Huang has come under heightened scrutiny after reports this month that U.S. officials believe Jensen Huang was involved in a romantic relationship with a Chinese woman recruited by China's Ministry of State Security. People familiar with a U.S. memo said the document, based on intelligence information, identified that woman as Alice Huang, who is also a partner at Hexi Private Equity Partners.

Hexi, a fund established in 2010, stopped updating its annual results in 2022, and many of its fund products have been wound up, according to Chinese corporate filings. Kang Wei also serves on the board of Guilin Bank, a state-controlled lender whose largest investor is the province's transportation authority, according to corporate records.

The New York Times first reported that U.S. authorities believed Jensen Huang had been targeted in an espionage campaign by Chinese authorities. Nvidia's chief admitted on Sunday to having an affair, two days after the Financial Times reported the alleged romantic relationship, and Nvidia's board said it would open an investigation into the reports.

Nvidia shares fell 5 per cent in pre-market trading on Monday after the board's announcement. China's foreign ministry said on Monday that the spying allegation was groundless and described it as smear and defamation, while Alibaba did not immediately respond to a request for comment.

In our earlier coverage of the Nasdaq 100 (NDX), we examined how the index was sliding under short- and medium-term moving averages amid a sharp intraday selloff, with momentum signals mixed and downside risk elevated. We also highlighted the launch of JQQQ, a blockchain-native fund designed to broaden digital access to Nasdaq-100 exposure, while noting that traders were still watching key resistance and support levels for confirmation of the next move.

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