Jensen Huang, CEO of NVIDIA. (Reuters photo)
As Huida CEO Jen-Hsun Huang is involved in Chinese intelligence suspicions, the U.S. Department of Commerce's investigation into Singaporean data center operator Megaspeed has also attracted attention. The New York Times reported that Huida’s legal director had taken the initiative to contact investigators from the Ministry of Commerce and mentioned that senior officials of the Ministry of Commerce had agreed to contact them. The Ministry of Commerce subsequently suspended its own investigation and transferred the case to the Ministry of Justice. Investigators were concerned about the manner of the contact, but the case was not dropped.
The New York Times pointed out that the U.S. Department of Commerce is investigating whether Megaspeed violated export controls by transferring Huida's advanced artificial intelligence (AI) chips to China. This Singaporean company was a client of Huida, and Huang Le (also known as Alice Huang), the person Huang Renxun admitted to having an extramarital affair, also served as a senior executive of the company.
The report revealed that Huida’s legal director, Tim Teter, contacted Commerce Department official Jeff Kessler in August last year and mentioned in an email that Kessler had given Huida permission to contact investigators. Kessler is the top export control official at the Commerce Department, reporting directly to Commerce Secretary Howard Lutnick. Investigators considered it unusual for company representatives to mention that senior officials had agreed to contact and were worried it might affect the investigation process.
The New York Times reported that after receiving the email, the Ministry of Commerce held an internal meeting to discuss and notify relevant law enforcement agencies. The Ministry of Justice later requested the Ministry of Commerce to suspend the investigation, and the Ministry of Commerce cooperated with the case. The case was later transferred to the Ministry of Justice. The Justice Department's takeover does not mean the investigation is over. Huida stated that the company communicates with government officials to respond to questions, provide available information and seek guidance.
Investigative process questioned, conflicting accounts on whether Trump received warning
The British "Guardian" published an editorial on the 9th, linking the controversy over the investigation process to US President Trump's national security decisions. The editorial pointed out that Trump was briefed on Huang Jen-Hsun’s dealings with Huang Le and related intelligence concerns, but failed to take action. Asked whether action should be taken based on the intelligence, Trump responded: "No, I don't think so."
However, another report in the New York Times on the 9th stated that Trump said he did not remember receiving an intelligence briefing warning about the relationship between Huang Renxun and Huang Le. The two statements are inconsistent, and whether Trump has received relevant warnings remains to be further clarified.
The Guardian editorial also mentioned that Jen-Hsun Huang lobbied the Trump administration to relax chip export restrictions to China; the Trump administration later lifted the global AI chip export restrictions during the Biden era and allowed Huida H200 chips to be sold to China. The editorial questioned whether the Trump administration still relaxed restrictions on chip exports after receiving relevant national security warnings.
The editorial also mentioned that Huida had donated money to support the construction of the White House Ballroom, but there is currently no evidence to prove that there is a direct exchange of benefits between corporate donations and chip export policies. The Guardian argued that Congress has reason to investigate whether the Trump administration was aware of foreign intelligence risks and still decided to relax restrictions on chip exports to China.
There are still many issues to be clarified in this incident, including whether Megaspeed violated U.S. export controls, whether Huang Le passed intelligence on behalf of China, and whether Huang Renxun had contact with or was aware of the relevant situation. Huida's board of directors stated that there is currently no reason to believe that company secrets or U.S. national security information have been leaked and that it will investigate relevant allegations.
