Culper Research Alleges Nvidia Has Hidden Chinese Revenue Exposure
Short seller Culper Research bet against Nvidia six months ago by flagging a massive hidden exposure to Chinese demand, and the stock is down 27.9% since then, Fortune reported.
The China revenue allegations
In May, Culper Research raised concerns that more than 20% of Nvidia’s fiscal 2026 compute revenue came from Chinese demand. This ran counter to assertions from the company that its China business dropped to zero after U.S. export restrictions took effect in April 2025.
Culper alleged the revenue flowed through the smuggling of restricted GPUs and via Southeast Asian intermediaries. These intermediaries purchased Nvidia hardware and provided computing capacity to mainland customers, according to the report.
The allegations centered on Singapore-based Megaspeed International. The short seller said that Megaspeed was secretly financed by China’s Alibaba through a network of shell companies.
Shipment declines impact Nvidia as Beijing blocks imports
Trade records analyzed by the research firm suggested substantial declines in shipments during the first quarter of 2026. Mainland operators reported very few orders remaining in China, which created a major financial blow for Nvidia.
Beijing has increasingly blocked Nvidia imports in favor of domestic chipmakers. Last November, Jensen Huang told Bloomberg that Nvidia had investigated diversion risks thoroughly.
“We’ve chased down every single concern. And we’ve repeatedly tested and sampled data centers around the world and found no diversion,” Huang told Bloomberg.
Report details Jensen Huang's relationship with Alice Huang
The report also detailed ties between Jensen Huang and Alice Huang, a Megaspeed executive who is a Chinese national. Culper highlighted an uncomfortably close relationship without establishing romantic ties.
“Nvidia CEO Jensen Huang has not only vouched for Megaspeed, but seems to have quite literally walked alongside Megaspeed at every step, while maintaining an uncomfortably close relationship with Megaspeed’s Alice Huang, a Chinese national,” the report said.
The firm said that Jensen Huang was first spotted partying with Alice Huang in June 2024, which coincided with the filing of the Apex/Alibaba pledge. He then dined with her in Taiwan in May 2025, just weeks after new trade restrictions were announced.
A Megaspeed employee told the researchers that Jensen Huang visited Megaspeed-linked data centers every few months. Representatives from Alibaba always accompanied him on those visits.
The employee characterized their relationship with Jensen as very close. Another former Nvidia employee suggested that many staff members wondered if there was a special relationship.
Unanswered questions
Culper Research did not immediately respond to a request for comment from Fortune regarding the return on its short bet. Nvidia has faced subsequent leadership changes, including Jensen Huang being ousted as CEO following his romantic affair with a suspected Chinese spy.