Nvidia faces two China smuggling scandals as partners Supermicro and Megaspeed face probes

Nvidia faces two separate scandals involving alleged smuggling of its AI chips to China through Southeast Asia, undermining CEO Jensen Huang's repeated denials of diversion. The cases involve partner Supermicro and customer Megaspeed, with Huang also admitting to an extramarital affair linked to a Megaspeed executive. Federal prosecutors charged Supermicro co-founder Wally Liaw with routing $2.5 billion in Nvidia-equipped servers to China via a Thai front company, using dummy servers and altered serial labels to deceive auditors. Separately, Megaspeed, Nvidia's largest Southeast Asian buyer, is under U.S. investigation for allegedly selling billions in chips to Chinese firms through Malaysian and Indonesian data centers. Huang's affair partner, Alice Huang, a former Megaspeed executive, is suspected by intelligence officials of being recruited by China's Ministry of State Security. Nvidia's board has launched an independent investigation, while Senator Elizabeth Warren is expected to issue subpoenas in January following Democratic midterm gains.