Nvidia Executive Calls Off Investigation: Three Possible Outcomes for Jensen Huang and Nvidia

Jensen Huang's crisis is far from over. U.S. media has revealed that NVIDIA executives privately called the U.S. Department of Commerce to inquire about the investigation into Huang Lei. Not long after, the investigation was suddenly halted and transferred to the Department of Justice. But it has been left there for a year now with no movement whatsoever. Furthermore, as early as last October, the Trump administration already knew that Jensen Huang had an affair with a CCP swallow, Honey Trap agent. Why was it held back then, only to erupt all at once now? As this incident has developed to this point, beyond Huang Lei's mysterious background , the romantic interactions between Jensen Huang and Huang Lei, and the U.S. investigation into Huang Lei and her company, there is one One more critical underlying issue. Did Jensen Huang's Nvidia actually violate US sanctions by reselling chips to the CCP? Was Jensen Huang completely unaware of Huang Lei and her company's ties to the CCP? Or should he have known but continued selling anyway? Or was he not only aware but even helped cover it up, becoming an accomplice? In other words, has Jensen Huang actually been turned? These three possibilities could lead to three completely different outcomes for Jensen Huang and Nvidia. So today, we're going to take a look at the aftermath of this incident from this perspective. In 2024, the Bureau of Industry and Security under the U.S. Department of Commerce set its sights on a Singaporean company called Megaspeed, the very company that Huang Lei took over from the Chinese firm Seven Road. Renamed and registered under the name of a Singaporean individual. As for the specific operational path, we covered that in yesterday's episode, so for those who haven't seen it yet, you're welcome to go check it out. In the United States, it's the Department of Commerce that regulates whether chips can be sold to the CCP. The BIS specifically handles exports. It calls the shots on which high-tech items cannot be sold to the CCP, who needs to apply for a license, and which companies end up on the blacklist. It has an enforcement team under its command with agents who are official federal law enforcement officers authorized to audit accounts, conduct searches, and issue fines. Megaspeed is a company that rents out computing power. It buys NVIDIA chips, installs them in its data centers in Southeast Asia, and then leases that computing power to Chinese clients on a monthly basis. And its biggest client is Alibaba. As we discussed yesterday, it was only by using Alibaba's lease contract that they were able to open the door to Nvidia in the first place. So how did Megaspeed end up on the US Department of Commerce's radar back then? There are a few suspicious points. Let's look at them one by one. First, they bought the chips from Nvidia, but didn't use them. At the end of 2023, Megaspeed only had 5.7 million US dollars in cash on its books. In June 2024, during the Computex Taipei exhibition, the same month Huang Lei made a bet at a Taipei bar and called Jensen Huang, just a few weeks later, Nvidia's most advanced chips began to be shipped in batch after batch to Megaspeed's subsidiary in Malaysia. By the end of 2024, officials from the Department of Commerce went to the data center in Malaysia for an on-site inspection, only to find a large number of top-tier Nvidia devices still packed in their original boxes. Untouched. This is very strange. Why's that? Because, as we said, Megaspeed makes money by renting out computing power. Major clients like Alibaba are waiting to use this computing power, so if these chips aren't plugged in, they won't earn a single cent. Unless, of course, these goods were never intended to be installed in the data center in the first place. In the spring of 2025, Megaspeed suddenly went on a massive buying spree. Most of the chips were purchased in the six weeks leading up to May 15th because the Biden administration had established a rule that starting May 15th, you would need a license from the U.S. government to sell AI chips to Southeast Asia. So they were just scrambling to hoard as much as they could before the door slammed shut. By November 2025, Bloomberg had combed through customs records in Malaysia and Indonesia and calculated that Megaspeed had imported at least $4,600,000,000 worth of NVIDIA equipment, containing at least 136,000 chips, more than half of which were NVIDIA's latest Blackwell models. What kind of scale is 136,000 chips anyway? Outside estimates suggest that DeepSeek, which burst onto the scene in China that year, had about 50,000 Nvidia chips. So, MegaSpeed had nearly three times that amount in terms of sheer volume, and more than half of them were Blackwell chips, which performed several times better. Roughly calculating by computing power, that's about the scale of five DeepSeeks. So, to run that many chips, a rough estimate is that you'd need over 200 megawatts of power. However, the largest data center Megaspeed had in Malaysia only allocated 68.4 MW of power for it, which is less than a third of what it needed. And in February of this year, the landlord of this data center, Bain Capital, kicked Megaspeed out without giving a reason. Meanwhile, Megaspeed's own data center in Malaysia is still under construction to this day. So, where exactly are these hundreds of thousands of chips being installed and operated? The key point is that even Nvidia itself hasn't been able to keep an accurate count of such a massive number of chips. Nvidia once sent people to Megaspeed's data center to take inventory, and they only saw a few thousand Blackwell chips. Yet in mid-November of last year, Nvidia publicly stated that their site visits confirmed the the chips sent to Megaspeed were all where they were supposed to be. Is that really the case? NVIDIA once submitted a list to the US government claiming that they had accounted for this batch of goods at eight data center operators across three Southeast Asian countries. But Bloomberg reporters took that list and went to ask each data center one by one. And it turned out that two of the data centers said they didn't have any of Megaspeed's goods there at all. Not only that, but Bloomberg also compared the list NVIDIA submitted with its trade records and found that NVIDIA had underreported a full 50,000 chips worth billions of dollars. So where did these 50,000 chips that weren't reported to the U.S. government end up? The fourth suspicious point is in Shanghai. Bloomberg obtained a Chinese fundraising document that Megaspeed provided to Chinese investors, which stated that the largest NVIDIA computing cluster had already been built in a specific region It didn't specify which region, but the accompanying image was identical to the rendering of the super big data center built in Shanghai by Hexi Capital, which is related to Huang Lei, as we discussed in our last two episodes. If you have any questions about this, I suggest you watch our previous two episodes, because we have already explained the entire context and network of connections in detail there, so I won't repeat it here. For those who haven't watched them, I recommend you do so, so that you can piece together Wang Lei's entire background and this chain of connected transport. Coincidentally, Huang Lei also has a twin company in Shanghai called Shuoyao Technology. Its official website lists only chip models allowed to be sold to China, yet it is hiring engineers to maintain H100 and H200 chips, which are banned, and the work location is right next to that super data center. According to US sanctions, it should be impossible for these chips to enter China at all. So why would Shuiyao spend money to hire engineers to maintain these banned chips? Unless they have those banned chips? In 2025, Huang Lei was detained in Singapore. Records show he resigned from Megaspeed's board in November 2023. Yet, during the 2025 police investigation into the company, Huang was briefly detained and barred from leaving the country. In the end, the Singaporean police did not announce any related charges, and also clarified that they were not investigating his relationship with Chinese communist intelligence agencies. So, putting all these suspicious points together, they bought chips but didn't assemble them, they bought so many chips that their own server room couldn't even hold them, Nvidia couldn't even figure out the quantity of chips, and yet Huang Lei's company in Shanghai was hiring people to maintain the banned chips. Wang Lei had resigned, yet he was detained. All these suspicious points eventually attracted the attention of the US Department of Commerce. But it was precisely at this moment that NVIDIA stepped in. Now, we first need to introduce someone named Jeff Kessler. He is the Undersecretary of Commerce for Industry and Security, which means he's the head of BIS. He was nominated by Trump and reports directly to Secretary of Commerce, Lutnick. He is in charge of all chip export controls for the entire United States. In late summer 2025, NVIDIA's chief legal officer, Tim Tatter, made a phone call to Liz Kessler. He asked if the U.S. Department of Commerce was behind the detention of Huang Lei in Singapore. You see, Wang Lei's detention alarmed NVIDIA. NVIDIA sent its own chief legal executive to contact U.S. regulatory authorities, the head of the Department of Commerce, To inquire why their boss's mistress, who is also a major client of the company, was being detained. Was it your Department of Commerce behind this? The Department of Commerce, of course, replied that it had nothing to do with them. But what happened next is quite intriguing. In the weeks following that phone call, the rules for the Department of Commerce investigators changed. Anything involving Nvidia had to go through Kessler himself or require his approval, and external communications were forbidden from mentioning Megaspeed or its Malaysian subsidiary. Sources say this rule applied only to NVIDIA. In August 2025, NVIDIA's chief legal officer bypassed the standard procedures again and emailed the investigating agents directly, requesting a meeting. The agents refused. The legal officer replied, saying they didn't understand what the problem was since Kessler had already approved them to contact the agents. The agents were taken aback. Why? Because in their eyes, NVIDIA was a potential subject of a Commerce Department investigation. This was equivalent to the subject of your investigation dropping your boss's name to demand a meeting with you. This is a major taboo in conducting investigations. The agent immediately forwarded the entire email thread to Kessler. A few hours Two hours later, Kessler replied, saying to follow the rules strictly. The agent replied with, 10-4, thank you. 10-4 is American police code, meaning message received or understood. Now, NVIDIA's explanation is that they reached out to the government proactively to answer questions, provide first-hand information they possessed, and seek guidance. Do you believe that? Let me know in the comments. After this email incident, the Commerce Department immediately held a meeting to discuss it and quickly reported the situation to the law enforcement agency, the Department of Justice. The Department of Justice then quickly requested that the Commerce Department suspend the investigation. Why is that? The DOJ intervened to halt the Commerce Department's investigation, leading to the case being transferred to a criminal probe. As for why it was transferred to the Department of Justice, one reason is that NVIDIA's several contacts likely already compromised the Commerce Department's investigation. It's very likely that the head of BIS, Kessler, could become a subject of the investigation. Therefore, there was an urgent need to hand it over to an untainted department to intervene. Another reason is that the Commerce Department likely already possessed sufficient evidence, and this case needed to be escalated to a criminal nature. Although the Commerce Department can impose fines, revoke export privileges, and blacklist entities, these are all administrative penalties. Only the Department of Justice can take people to court and secure prison sentences. According to U.S. export control laws, individuals can be sentenced to up to 20 years in prison for willful violations. However, there is something unusual here. Since the end of 2025, the Department of Justice requested a suspension of the investigation. And for a whole year now, there has been absolutely no movement on this case. Over the past year, Megaspeed kept receiving NVIDIA shipments. In November 2025, when the investigation was suspended, Malaysian customs records show Megaspeed imported at least 17,544 of NVIDIA's latest GB300 chips, worth about $800 million. NVIDIA says it asked the US government if it should cut ties with Megaspeed and was told no. To this day, Megaspeed is still listed on NVIDIA's official cloud partner list. So, if the government clearly knows this company has issues, why did they let NVIDIA keep the connection alive? Is this an intentional green light for business, or are they playing the long game to catch bigger fish? We'll talk about that later. At this point, we can speculate on whether NVIDIA will actually get into trouble this time because of Megaspeed. NVIDIA's chips are U.S. products, and U.S. export regulations follow the goods. You have to follow the rules when selling from the U.S. to Malaysia, and if they're re-exported from Malaysia to China, that's still a violation of U.S. sanctions. Even though Megaspeed is a Singaporean company, it must also comply. And as the seller, NVIDIA, the Department of Commerce requires you to know your customers, including who you sold your goods to and where they're ultimately being used. You need to be aware of all of that. In May 2025, the Department of Commerce even issued specific guidance explicitly warning to be vigilant about data centers in Southeast Asia transshipping AI chips to China. So based on all the suspicious points we've mentioned and the fact that this case has been transferred from the Department of Commerce to the Department of Justice, NVIDIA faces three possibilities corresponding to three potential outcomes. The first is that they were completely unaware. In other words, Megaspeed secretly shipped the chips into China behind NVIDIA's back. And NVIDIA was kept in the dark. In this scenario, the most NVIDIA would face is the compliance oversight, potentially resulting in administrative fines from the Department of Commerce. It would hurt their wallet and reputation, but it wouldn't be a fundamental blow. In 2023, the American hard drive giant Seagate was fined $300 million by the Department of Commerce for supplying Huawei. Which was the largest fine in the department's history. This is also the current stance of NVIDIA and its board of directors. Claiming complete ignorance and that U.S. national security and company secrets were not compromised as a result. This is the first possibility. The second possibility is that NVIDIA knew or should have known. How should we interpret this should have known? In US export control regulations, there is a specific definition for knowledge. It doesn't just mean knowing something explicitly. If you are aware that something is highly likely to happen, that also counts as knowing. And this awareness can be inferred from your willful disregard of facts right in front of you, or from deliberately avoiding learning the facts. Simply put, if you pretend not to see it, it still counts as having seen it. As knowing. So how do we determine if NVIDIA should have known? This would depend on looking at their internal emails, meeting minutes, and sales records. Was it discussed? This is the reason why NVIDIA launched an urgent investigation. An independent investigation by a third-party agency is being conducted to determine whether Jensen Huang and NVIDIA knowingly walked into a trap. The red flags currently visible to the public include the suspicious points we mentioned earlier, as well as what we discussed in the last two episodes. Megaspeed only had $10,000 on its books, yet it managed to purchase billions of dollars worth of goods. And for such a large company, it only had two employees in the office on weekdays. And so on and so forth. These are the things that have already been disclosed and are visible to the public, but what the public cannot see is what the U.S. government holds, the intelligence agency's one-year electronic surveillance records of Huang Lei. What exactly did he and Jensen Huang talk about? Did they talk about chips? Did they talk about Megaspeed's goods? Did they talk about data centers in China? If it really comes to this, what would happen to Nvidia? Regulations allow fines up to double the transaction amount per violation. With billions in business, that's an astronomical sum. Even worse is losing export rights. For a chip company, that's cutting off its lifeline. There's another point. On October 30th, Jensen Huang even told Bloomberg that NVIDIA had counted every single Megaspeed chip. If this statement is proven to be false, it would involve misleading investors. So what about now? Investors have already filed a class action lawsuit against NVIDIA and Jensen Huang. The worst case scenario is that NVIDIA not only I only knew about it, but also helped cover it up, becoming an accomplice. This would be a fundamental shift, turning a violation into conspiracy and obstruction of justice. This is the core issue. Was Jensen Huang actually turned by Huang Li? Public info suggests accomplice charges are hardest to prove. It's legal for legal teams to contact regulators, like NVIDIA's chief legal officer did with the Department of Commerce. Proving obstruction of justice requires showing NVIDIA intentionally undermined the investigation. Currently, no evidence shows NVIDIA improperly influenced the investigation's suspension. However, if one day evidence emerges that Nvidia was not only aware, but also pulled strings behind the scenes to pause the US regulatory investigation into them, then that would be a huge problem. And it wouldn't just be Nvidia. High-level officials at the Department of Commerce would very likely get dragged into it as well. So, friends, based on the facts and suspicious points we've laid out, which category do you think Nvidia falls into? If you think they were completely unaware, type a 1 for me. If you think they knew, or should have known, but kept selling anyway, type a 2 for me. If you think they not only knew, but were also helping to cover it up, type a 3. Leave a comment and let me know your verdict. Let's see how everyone chooses after watching this far. Personally, I think the first scenario is the most likely, and the last one is the least likely. However, one thing worth pondering is the reaction of the US government. We know that Trump had already received a briefing on this matter a year ago, in October 2025, but he didn't take any action. Nor did he warn Jensen Huang. Generally speaking, if a spy appears around an American citizen, U.S. intelligence agencies will usually give that person a heads up. For example, as we mentioned in Sunday's episode, U.S. intelligence agencies did warn Trump's daughter and son-in-law about Wendy Deng's background So why didn't Trump and the intelligence agencies warn Jensen Huang? Either they chose to turn a blind eye and let the business proceed, or they intentionally suppressed it because they needed more evidence. This evidence includes confirming Huang Lei's identity as a spy, the transactions between Megaspeed, represented by Huang Lei and Jensen Huang, and Nvidia, in other words, whether Nvidia is actually involved in any violations, and the role Jensen Huang played in all of this. This is the most sensitive part of the whole matter. Because for over the past year, Jensen Huang hasn't just been a businessman selling chips. He has also been one of Washington's most tireless lobbyists. Let's just look at the public records. In May 2025 at Computex Taipei, Jensen Huang publicly stated that US export controls were a failure. Under these restrictions, Nvidia's market share in China dropped from 95% to 50%. Since then, he's visited the White House repeatedly to meet Trump. He argues that blocking sales to China just forces competitors like Huawei to break free from US technology. This October, he told Bloomberg again that by restricting exports to China, we made a mistake, and it's difficult to reverse. How much of these arguments are his own independent judgment? And how much is influenced by Huang Lei? Nobody knows. From a business standpoint, China once accounted for about 20% of Nvidia's market. As the CEO, it's only natural that he would want to reclaim that market. However, on the other hand, U.S. memos indicate that Huang Lei was recruited by the Ministry of State Security to get close to him. Taiwan's Liberty Times also cited anonymous sources claiming that one of Huang Lei's tasks was to get Jensen Huang to lobby on behalf of Beijing to have the U.S. relax export controls. So how much of Jensen Huang's lobbying was influenced by the CCP through Huang Lei? That is the most unsettling part. On a practical level, many haven't noticed that over the past 18 months, the chip war between the US and the CCP has changed drastically. Spanning from the Biden to Trump administrations, by April 2025, all Nvidia chips, including China-specific H800 and H20 versions, were placed under export controls. The CCP now faces a comprehensive US blockade on on mid to high-end chips. However, three months later, which was also when Huang Lei and Jensen Huang were involved in a romantic affair, Jensen Huang met with Trump that July, and the sales of the H20, the crippled version Nvidia specifically made for China, were resumed. Last December, Trump gave the green light again, allowing Nvidia to sell the more powerful H200 to China, with the US government taking a 25% cut. This May, the U.S. issued H-200 licenses to about 10 Chinese companies, including Alibaba, Tencent, ByteDance, and JD.com, all of which were included. It took only a year and a half to go from a total blockade to a step-by-step easing of restrictions. We don't know exactly how much weight Jensen Huang carries in this, or how big a role he played. But there is no doubt that he was the one pushing hardest for this relaxation. This has sparked another interpretation of his current apology letter among many people. He wrote a letter to all employees, admitting to infidelity toward his wife, but he emphasized that he loves this country, loves this company, is committed to protecting Protecting NVIDIA, supports national security, and is proud to be an American. In the letter, he didn't mention Huang Lei's name, didn't mention spies, and certainly didn't mention Megaspeed or chips. Many people say this is just a minor apology for personal moral failing. Is the cover up a much deeper, major error regarding the US-China chip war. The CCP is downplaying it. China's foreign ministry has denied the spy allegations three times, calling them baseless smears. Global Times editor Hu Xijin claims Chinese intelligence doesn't use honey traps. Hardly believable. He insists Fang Lei isn't a spy, calling it a political ploy to target Jensen Huang, and by extension, Trump. Look at Beijing's narrative. They say Fang Lei is just an ordinary businesswoman, and that this whole thing is merely an extramarital affair. And on top of that, they blame it on the infighting between the two US parties, while not saying a single word about those billions of dollars worth of missing chips. The more Beijing frames this as a sex scandal, the more it shows they fear people focusing on the chips. Moving forward, we should ask why the U.S. government sat on this for a year, only for it to erupt now. There are two possibilities. The DOJ investigation has reached its final stages, or it's about U.S. policy infighting. Is someone using this exposure to force the Trump administration's hand on its chip policy toward China? Or is it that this matter was exposed after the midterm elections to divert attention away from them? It does seem to have shifted the discussion away from the Republican Party's crushing defeat. But for the U.S. government, for the Trump administration, the Jensen Huang situation isn't exactly a good thing either. So friends, what do you think? Let me know in the comments. I also want to ask you, having seen this, do you believe Jensen Huang on the most important and core question of whether he has been turned or not? Trump has said publicly time and time again that he trusts Jensen Huang and that Jensen Huang is a decent person. But doesn't a president repeatedly emphasizing this point to the public actually suggest that within the U.S. government, in places the public can't see, there are already people who have huge doubts about Jensen Huang's loyalty? So do you believe him? Let me know in the comments. If you believe him, type believe. And if you don't believe him, type don't believe. Alright, that's all for today. Friends, if you like my show, don't forget to give it a like. New friends, welcome to subscribe to TrueView. And feel free to forward and share my show with more friends. Alright, that's all for today. Thanks for watching, everyone. Don't And don't forget, we'll see you again at the same time this Thursday on TrueView. And bye!