Two reports published this weekend put Nvidia’s China business under fresh pressure. The New York Times found that New Matrix, a Chinese company cleared by the US Commerce Department to buy Nvidia’s H200 AI chips, appears to have an empty office and owners tied to a firm the US has blacklisted since 2024, according to The Verge’s summary. Separately, The New York Times and the Financial Times reported on a US intelligence memo alleging that a Chinese intelligence agency recruited an executive of a Singapore-based company to spy on Nvidia CEO Jensen Huang, which Nvidia plays down.
What The New York Times found about New Matrix
The Verge, summarizing the Times investigation, says New Matrix is on the list of firms approved to handle H200 chips, yet its listed office is “a hollow gray shell with wires dangling from the ceiling where lights should be.” The company was created 17 months ago, and little information about it can be found online. It does not appear in the directory of the building at its listed address, and both a receptionist and a manager at the nearby industrial-park property agency told reporters they had no record of it.
What is known about the company is more worrying than what is missing. Its owners reportedly have ties to a Chinese private equity firm that the US government has blacklisted since 2024. The Times describes this as a pattern rather than a one-off, with several companies linked to entities under national-security trade restrictions among those approved to buy the chips. We have not seen the Times investigation ourselves, so these details are as relayed by The Verge.
The memo about Megaspeed
TechCrunch reports that a memo circulating earlier this year, reportedly based on US intelligence, claimed Alice Huang, an executive at Singapore-based Megaspeed, was recruited by China’s Ministry of State Security to spy on Jensen Huang. The Times reported on the memo first, and the Financial Times followed with further claims. The claims are allegations in a memo; none has been confirmed by a court or a government statement that we have seen.
An Nvidia spokesperson told the Times that Jensen Huang’s interactions with Alice Huang were “not unusual” and that the company does not share classified information with its customers. On the New Matrix reporting, the spokesperson said Nvidia sells “the first, best and most of our technology in America.”
How we got here
Under the Biden administration, Nvidia was restricted from selling its top AI chips to China. The Verge notes that the Trump administration relaxed those limits after Nvidia agreed to give the government a 15 percent cut of such sales, and that Jensen Huang lobbied intensively for the change. Our explainer on how AI chip export controls work covers the licensing framework these approvals sit inside.
How it compares with earlier export-control debates
Export-control arguments have mostly centered on smuggling, where chips are diverted through third countries after a legitimate sale. The New Matrix case is different, because the question is about the vetting that happens before a sale is approved. If a licensed buyer is a shell with links to a blacklisted entity, the license itself becomes the route for diversion, and no smuggling is needed. That is a policy design issue as much as an enforcement one, since it concerns who reviews buyers and how deeply.
What it means for Nvidia and its customers
Nvidia’s own position, as stated to the Times, is that it relies on the government’s approval process and sells mostly in the US. For investors, the risk is political rather than financial in the short term: lawmakers who already question the relaxed rules now have a concrete example. The timing is awkward, as the AI sector has been rattled by the midterm results and concerns about regulation. For Chinese buyers, any tightening would reduce access to the H200. Our background piece on why Nvidia dominates AI hardware explains why alternatives are hard to substitute.
What to watch next
- Whether the Commerce Department comments on, reviews or revokes New Matrix’s approval.
- Whether members of Congress request documents from Commerce or Nvidia on how buyers are vetted.
- Further reporting on Megaspeed and any response from the company or Singapore authorities.
- Whether the 15 percent revenue-share arrangement draws new legal or political challenge.
- Nvidia’s next earnings call for any comment on China revenue and compliance.
Key takeaways
- The NYT reports that New Matrix, approved to buy Nvidia H200 chips, has an empty office and owner ties to a firm blacklisted since 2024.
- A US intelligence memo alleges China’s Ministry of State Security recruited a Megaspeed executive to spy on Jensen Huang; this is an allegation only.
- Nvidia says its interactions were “not unusual” and that it does not share classified information with customers.
- The case shifts attention from chip smuggling to the vetting of licensed buyers.
- The trade rules were loosened under the current administration in exchange for a 15 percent share of sales, per The Verge.
Frequently asked questions
What is the Nvidia H200?
The H200 is one of Nvidia’s high-end data-center GPUs for AI training and inference. Sales to China have been restricted by US export rules, which were later relaxed for approved buyers.
Is the spying claim proven?
No. It comes from a US intelligence memo as reported by the NYT, the FT and TechCrunch, and Nvidia says the interactions were not unusual. No official finding has been published that we have seen.
Did Nvidia do anything illegal?
The reports do not say so. They raise questions about whether the Commerce Department and Nvidia vetted Chinese buyers carefully enough, and Nvidia says it sells mostly in the US and relies on government approvals.
