A newly reported $7.5 billion channel for Nvidia processors into China has renewed attention on a vulnerability the chipmaker identifies in its own securities filings: after selling its products, Nvidia cannot physically control where they go and relies partly on customers and partners to observe US export restrictions.
In its fiscal Q2 2027 filing, Nvidia said it assists authorities investigating attempted diversion but “must also rely on the compliance programs of our customers and partners.” The company warned that even unsubstantiated diversion reports or failures by business partners could damage its reputation and commercial relationships.
That risk is now being tested by allegations published by The Information, which cited two people familiar with Chinese businesswoman Alice Huang. The outlet reported that a network involving Huang, her husband, and her sister helped deliver at least $7.5 billion worth of Nvidia chips to Chinese companies beginning in 2023.
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The network allegedly moved approximately 240,000 processors, including H100, H200, and A100 models, into China. The Information said Huang used contacts at Nvidia and distributors when orders for export-controlled products encountered obstacles.
A central company named in the investigation, Shanghai Century Litong, obtained Nvidia preferred cloud-partner status in 2023, according to The Information. Nvidia’s public partner directory lists Shanghai Century Litong Data Service as a cloud partner for compute products.
Century Litong told The Information that it obtained its partner qualifications and business resources lawfully and denied doing business with Alice Huang.
Concerns about the distribution network were already public. Bloomberg reported in December 2025 that Singapore-based Megaspeed had imported at least $4.6 billion in Nvidia hardware containing at least 136,000 GPUs, based on Southeast Asian customs data. The outlet found inventory discrepancies but did not establish that the chips had been diverted illegally to China.
Reuters separately reviewed corporate records showing Huang became Megaspeed’s controlling shareholder in 2023. It also identified shipments of Nvidia hardware to the company’s Indonesian subsidiary, while emphasizing that shipments to Indonesia did not themselves prove an export-control breach.
The restrictions differ by product and date. Nvidia’s filing identifies licensing requirements for A100 and H100 chips dating to 2022, while limited H200 shipments to approved Chinese buyers became possible under US licenses granted beginning February 2026.
Nvidia’s board opened an investigation on Sunday into reports that Jensen Huang may have been targeted by foreign intelligence. The company said it had no reason to believe trade secrets or national-security information were compromised. China has denied the espionage allegations.
READ: Nvidia CEO Jensen Huang Admits Infidelity as Board Opens Investigation Tied to Alleged Chinese Spy
Nvidia shares fell 4.3% on Monday, before The Information published the $7.5 billion figures.
