Firm linked to Jensen Huang’s ex-lover reportedly brokered nearly $12 billion in Nvidia chip orders for China
The business move
Megaspeed, a company linked to Alice Huang, the former lover of Nvidia’s ousted CEO Jensen Huang, brokered nearly $12 billion in Nvidia chip orders for Chinese firms across 2024 and 2025. According to the Wall Street Journal, this privately arranged deal significantly boosts Nvidia’s penetration in China beyond public figures. Short seller Culper Research estimates Nvidia’s revenue share from China is over 20 percent, far above the officially reported 7 percent.
Why it matters
This massive, quasi-official arrangement reveals that Nvidia’s China business is much larger than disclosed. The inflated gap between reported and actual revenue figures pressures Nvidia’s transparency and complicates how investors and regulators assess risks tied to China’s market. The heavy use of intermediaries for chip distribution also clouds supply chain clarity and raises questions about compliance with US-China tech export controls, which could expose Nvidia or its partners to legal or reputational risks.
Who gains and who gets squeezed
Chinese companies gain privileged access to high-end Nvidia chips through Megaspeed’s facilitation. Nvidia benefits from significantly expanded sales in a vital but geopolitically sensitive market, boosting revenue and market share. Meanwhile, competitors lacking such deep local networks may find it harder to penetrate China’s lucrative but restricted technology market. Investors should note that unreported China revenue inflates Nvidia’s financials in ways that may recalibrate growth expectations and risk profiles.
What to watch next
Watch for potential regulatory responses or tightened export enforcement as US authorities scrutinize Nvidia’s China deal channels. Any sanctions or restrictions could slow Nvidia’s China growth or force restructuring of sales channels. Also monitor Nvidia’s public disclosures and how they adjust revenue reporting to more accurately reflect China exposure. This could recalibrate investor confidence and impact Nvidia’s valuation in the near term.
AI Quick Briefs Editorial Desk