A Chinese company founded by Alice Huang, the businesswoman at the centre of the growing Nvidia controversy, reportedly obtained advanced artificial intelligence (AI) chips that Washington had prohibited from being exported to China. The development has intensified questions about possible violations of US export controls and the role of Southeast Asian data centres in supplying restricted semiconductor technology to Chinese companies.
The company, Shanghai Longteng Intelligent Computing, reportedly acquired servers containing Nvidia’s H800 processors through a Singapore-based technology company. The H800 chips were specifically designed for the Chinese market but were later restricted by the United States in 2023 as Washington tightened controls on advanced semiconductor exports to Beijing.
The latest findings have added another dimension to the controversy surrounding Nvidia, its former chief executive Jensen Huang and Alice Huang, whose business connections have attracted attention from US authorities.
The documents submitted to Chinese authorities indicate that the equipment was installed at a data centre in Shanghai. However, the precise route through which the servers reached the Chinese company remains unclear. It is also not established whether Alice Huang personally arranged or participated in the transaction.
The discovery is significant because the H800 processors were among the advanced Nvidia chips restricted under US export regulations. Washington introduced the restrictions to prevent China from accessing high-performance computing technology that could strengthen its artificial intelligence capabilities, including applications with potential military uses.
The controversy also raises questions about whether overseas cloud infrastructure and intermediary companies are being used to bypass restrictions on direct semiconductor sales to China.
Shanghai Longteng was founded by Alice Huang, who has also been associated with Singapore-based Megaspeed International, a data centre company that has come under scrutiny over suspected diversion of Nvidia chips. Megaspeed provides access to AI computing capacity using advanced processors, making its business relationships particularly relevant to the investigation.
Reports suggest that Alice Huang held a senior position at Megaspeed between March and November 2023. During this period, the Singapore-based company reportedly became a major buyer of Nvidia processors, with purchases exceeding $4 billion.
US authorities have reportedly examined whether some of the computing infrastructure and hardware acquired through Southeast Asian companies ultimately benefited Chinese customers who were prohibited from purchasing those chips directly.
Megaspeed has said it is investigating whether its activities complied with applicable export control requirements. The allegations have not established that the company deliberately violated US law.
The Shanghai Longteng development has also drawn attention because company filings reportedly identified a substantial collection of servers as collateral for financing arrangements.
The H100 and H200 processors are also subject to US export restrictions for China without the required licences.
The filings provide evidence that the equipment was associated with the Shanghai data centre, but they do not explain exactly how it was procured or establish that Alice Huang was directly involved. Reports also indicate that she had stepped away from her ownership interest in Shanghai Longteng years before the servers were listed as collateral.
The investigation has further widened because of the alleged connections between Alice Huang’s business network and the supply of Nvidia processors through Singapore and other Southeast Asian markets. The region has become an important destination for data centre investments as technology companies expand their infrastructure to meet the growing demand for AI computing.
However, the possibility that restricted chips could be accessed remotely by Chinese customers has raised concerns among US lawmakers and regulators. Companies can operate data centres in countries where chip exports are permitted while offering computing services to customers elsewhere. This arrangement has made it increasingly difficult for authorities to establish where advanced processors are ultimately being used.
Southeast Asian countries, particularly Singapore, Malaysia, Thailand and Vietnam, could therefore face closer scrutiny over their semiconductor and data centre operations.
According to industry reports, US lawmakers have urged the Commerce Department to review export licences covering Nvidia chips and server equipment supplied to companies operating across the region. There are concerns that intermediaries could be helping Chinese businesses access computing power that they cannot legally purchase within China.
Any tightening of export restrictions could increase equipment costs, delay deliveries and complicate expansion plans for regional data centre operators. Businesses may also have to introduce stricter monitoring systems to demonstrate where their chips are installed and who has access to their computing capacity.
Singapore has already faced questions about the movement of Nvidia processors through its territory. The government has indicated that only a small proportion of the chips booked by entities operating in the country physically arrived there, adding to concerns about the possibility of equipment being redirected elsewhere.
Malaysia has also initiated an investigation involving a Megaspeed subsidiary over suspected diversion of advanced AI chips.
The controversy has become more sensitive following developments surrounding Jensen Huang. The wider allegations involving Alice Huang have prompted renewed attention to Nvidia’s business relationships and its exposure to the Chinese market. Nvidia has faced questions about whether its chips were diverted through intermediary companies despite restrictions imposed by Washington.
China, meanwhile, has rejected allegations that Alice Huang was connected to its intelligence agencies. Beijing has described the accusations as unsubstantiated and criticised US export restrictions, arguing that Washington is using national security concerns to limit China’s technological development.