The key facts

  • Megaspeed said it cooperated with the US Bureau of Industry and Security and hired an American law firm to inventory its GPUs
  • The Wall Street Journal reported that Nvidia's board of directors is preparing to remove Jensen Huang and is examining whether he became the target of a foreign intelligence operation
  • China's Foreign Ministry rejected the accusations, calling them a pretext for technology restrictions

Company Open to US Inspections

Singapore-based cloud company Megaspeed said it welcomes inspection by US authorities and is ready to cooperate amid allegations of Chinese espionage connected to its founder and to Nvidia CEO Jensen Huang. In a statement signed by the company's chairman and CEO James Tan Yong Pong, Megaspeed said it had already cooperated with inspections by the Bureau of Industry and Security of the US Department of Commerce and is ready to fully engage with other relevant agencies.

What the Company Has Done

Megaspeed stressed that it takes its obligations to comply with American export law extremely seriously and said it has hired an American law firm to conduct a full inventory of its graphics processors and an independent review of its export control compliance practices. The company added that it intends to prove through concrete actions that it operates transparently and in accordance with US laws.

Context Around Nvidia

The statement came against the backdrop of reports about the alleged ties of Megaspeed founder Alice Huang, whom US authorities, according to published reports, suspect of links to Chinese intelligence. The Wall Street Journal reported that Nvidia's board of directors was preparing to remove the CEO after publications about two extramarital affairs. Huang himself previously admitted infidelity to his wife, and the board, according to this information, is investigating whether he became the target of a foreign intelligence operation. These details remain press reports and the subject of an inquiry, not confirmed conclusions by authorities.

Beijing's Reaction

China on Thursday rejected the espionage accusations. The US must stop fabricating the so-called Chinese spies narrative as a pretext for introducing technology restrictions, Chinese Foreign Ministry spokesperson Mao Ning said at a regular briefing in Beijing. According to her, China's scientific progress rests on independent innovation and open cooperation. Asked whether Alice Huang is in Beijing, she said she was not aware of the situation.