U.S. Expands Probe Into Alleged NVIDIA Smuggling to China, Eyes Super Micro Computer

[Financial News] The U.S. government is expanding its investigation into allegations that NVIDIA AI equipment was smuggled into China in connection with the affair scandal involving Jensen Huang, the former CEO of NVIDIA Corporation. Authorities are currently said to be targeting U.S. server maker Super Micro Computer to investigate whether equipment was smuggled into China.
Fortune, a U.S. business magazine, reported on the 12th (local time), citing a source, that the U.S. Department of Justice and law enforcement authorities are closely investigating allegations that Super Micro Computer’s AI equipment was smuggled into China. The investigation is being led by the U.S. Attorney’s Office for the Southern District of New York.
Earlier, The New York Times (NYT), in a report on the 29th of last month, claimed that Jensen Huang, NVIDIA Corporation’s former CEO, was having an affair with Chinese businesswoman Alice Huang (Chinese name: Huang Le). The newspaper said the U.S. government regarded Alice Huang as a spy for China’s Ministry of State Security and assessed that she had leaked information about Jensen Huang and NVIDIA to China. Other U.S. media outlets claimed that Alice Huang had used her ties to Jensen Huang to smuggle large quantities of NVIDIA AI products, whose export to China is banned, into China.
Fortune reported that it remains unclear whether the New York prosecutors’ investigation of Super Micro Computer is connected to the Alice Huang smuggling case, and that her involvement has not been confirmed.
In March, New York prosecutors had also indicted three former employees, including Super Micro Computer co-founder Yixian “Wally” Liao, on charges of violating U.S. export control laws. They were accused of attempting to route billions of dollars’ worth of Super Micro Computer servers powered by NVIDIA AI chips to Chinese customers via a company in Bangkok, Thailand.
Super Micro Computer CEO Charles Liang said in a letter to shareholders at the time, “We have taken action against all relevant employees identified, and they are no longer affiliated with Super Micro Computer,” adding, “Wally Liao has also resigned from the board.” The company reiterated in August, following an independent investigation, that its current management had no involvement in the smuggling case at the time.
Super Micro Computer did not respond to a request for comment on the matter. After news of the prosecutors’ investigation became public, the company’s shares plunged more than 11% that day and were fluctuating around $27 as of 1:50 p.m. Eastern time.
Meanwhile, U.S. media outlets reported on the 12th that Alice Huang, who had disappeared from public view since early this year, was staying in Beijing with the knowledge of Chinese intelligence authorities.
[email protected] Park Jong-won Reporter