Beijing : Nvidia CEO Jensen Huang's position is facing a cloud of uncertainty. The controversy surrounding his affair with a Chinese spy has intensified. It is reported that Alice Huang, the alleged Chinese spy at the center of this controversy, has now returned to her country.

According to NDTV, Alice Huang, founder of Megaspeed International, is currently living in Beijing. Security officials are aware of this, but it's not clear when or why she arrived in the Chinese capital or what she's doing there.

How did a Chinese spy become a power broker?

There has been widespread speculation about Nvidia's whereabouts ever since its CEO admitted to an extramarital affair and the company's board launched an investigation into allegations that Alice Huang was a Chinese spy.

Also known as Huang Le, former journalist Alice Huang later became a power broker, leasing Nvidia's advanced chips to major companies in the country.

This has sparked a controversy that has shaken the markets and may now lead to Jensen Huang stepping down.

However, China has denied that Huang was a spy. The Chinese Foreign Ministry has not issued any statement in this regard.

Megaspeed becomes the largest buyer of Nvidia chips

Alice Huang came into contact with the CEO when she founded Megaspeed. This company was the largest buyer of Nvidia chips in Southeast Asia and was the main route through which the company's advanced hardware was smuggled into China.

He played a key role in rapidly growing a new 'neo-cloud' company, which later became one of NVIDIA's most important partners during its regional data center expansion.

Online posts and publicly available information provide a rough outline of the rise of 'Megaspeed' and the crucial role it played in it.

After working in private equity and television, he founded Megaspeed in 2023. The company was formed by a spin-off from 7Roads Holdings Limited, one of China's largest video game enterprises.

This occurred after then-US President Joe Biden imposed strict restrictions on shipments of advanced AI chips to China. 7Roads first sold its Singapore-based subsidiary to Huang Le Limited (a British Virgin Islands company), after which Huang Le assumed control.

How did Megaspeed emerge?

In November 2023, Huang Le Limited sold Megaspeed to a Singapore-based 'shell company.' Just days after the sale, the firm was granted official Nvidia Cloud Partner status.

This is a very important status, due to which the company gets chips from Nvidia easily and on priority basis. Nvidia is a company which plays the role of 'kingmaker' in the entire industry.

Trade records show that in 2023, Megaspeed imported goods worth more than 1,000 times its cash balance, with imports of Nvidia products totaling more than $4.6 billion.

In several locations across Southeast Asia, the company rents Nvidia chips to Alibaba Group Holding Ltd. Alibaba Group itself has recently been under the scanner of US national security concerns.

The AI ​​and e-commerce company has rejected Washington's accusations of having ties to China's military, and declined to comment on the relationship.