Nvidia short seller warned of China risks involving CEO Jensen Huang
Culper’s China allegations
Culper’s report argued that Nvidia chips were reaching China through illegal diversion and Southeast Asian intermediaries. The United States bars sales of the high-powered products to the People’s Republic over national security and competitive concerns.
In a May 13 social media thread, Culper wrote that Nvidia had claimed its China business fell to zero after U.S. trade restrictions in April 2025. The firm said it believed China still accounted for more than 20% of Nvidia’s fiscal 2026 compute revenue.
Megaspeed drew scrutiny
Culper said Megaspeed had relatively few assets at the end of 2023, then spent $2.9 billion on Nvidia-powered servers within a year. The short seller also said documents showed Alibaba had provided billions to Megaspeed.
Culper described the company’s rapid growth as a pattern that experts had told it could signal diversion or circumvention. It also alleged that Huang had been alongside Megaspeed throughout and appeared to have a close relationship with Alice Huang.
Shares and policy response
Culper said Huang and Alice Huang attended a party together in June 2024 and dined together in May 2025, after U.S. trade restrictions. The article does not provide a response from Nvidia or Huang to the report’s claims.
Key points
- Culper disclosed that it had bet against Nvidia shares.
- The firm alleged that China received Nvidia chips through diversion and Southeast Asian intermediaries.
- Culper said Megaspeed bought $2.9 billion in Nvidia-powered servers within a year.
- Nvidia shares fell 25% between May 13 and Tuesday’s close.