China denies allegations of spy operation targeting Nvidia CEO

China has rejected allegations of a Chinese espionage operation targeting Nvidia's chief executive, Jensen Huang, describing the claims as "groundless speculation".

Key points

• In response to the allegations created by the Times, John Rizzo, a spokesman for Nvidia, stated: "Jensen's interactions with Ms Huang are not unusual or unexpected".
• While Beijing accused Washington of attempting to smear China, nvidia remarked their interactions were routine business engagements.
• Jensen Huang has argued that allowing Nvidia to sell more of its products to China is significant for maintaining US competitiveness in the global AI industry.
• Surveillance reportedly made public communications between Alice Huang and an American citizen.
• The paper's report comes against the backdrop of longstanding US worries regarding China's access to advanced computing technology.

US intelligence authorities believe that Alice Huang, a Chinese businesswoman linked to Singapore-based data centre firm Megaspeed, was gathering information for Beijing on the US chip-making giant, according to a report by The New York Times, external.

Notably, the report remarked Alice Huang. This person is of no relation to Jensen Huang, was under investigation over the feasible diversion of advanced Nvidia AI chips to China and had developed a close relationship with Jensen.

While Beijing accused Washington of attempting to smear China, nvidia remarked their interactions were routine business engagements. Alice Huang did not respond to the paper's request for comment. The BBC has contacted Megaspeed and the White House for comment.

US intelligence agencies had been monitoring Alice Huang and concluded that she was acting on behalf of the Chinese administration, according to unnamed sources cited by The New York Times.

Surveillance reportedly made public communications between Alice Huang and an American citizen. This person was subsequently identified as Jensen Huang through a process known as "unmasking".

It remains unclear what information Alice Huang – who is additionally known as Huang Le – allegedly passed to Beijing, how valuable it was, or when she is believed to have begun gathering intelligence.

At a regular briefing on Friday, Chinese foreign ministry spokesman Guo Jiakun remarked: "The report in question is based on groundless speculation and is nothing more than an attempt to smear China."

Meanwhile, the paper's report comes against the backdrop of longstanding US worries regarding China's access to advanced computing technology. It is considered crucial to developing artificial intelligence systems.

But Washington has restricted exports of the most advanced Nvidia chips to China since 2022, citing national security reservations and the risk that the technology could strengthen China's military operations. There have nevertheless been some loosening of restrictions during Trump's administration.

US authorities stated they had caught a number of firms illegally trafficking the chips throughout the Chinese border. They have additionally investigated whether businesses operating through third countries are helping Chinese businesses access the restricted technology.

Nvidia has remarked it complies with applicable export laws and that there is no evidence its chips have been smuggled into China.

He remarked customers like Megaspeed "receive ordinary business information – not sensitive Nvidia trade secrets – and zero information relevant to national security."

He continued that allegations the Singaporean business was smuggling chips to China "were thoroughly investigated and debunked last year".

Megaspeed informed the paper its current leadership took the allegations seriously and had appointed external legal advisers to conduct an internal investigation. The firm additionally noted it had informed the US administration that it was willing to cooperate. It is unclear how closely Alice Huang remains involved with Megaspeed.

In short, china denies allegations of spy operation targeting Nvidia CEO is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.