China denies allegations of spy operation targeting Nvidia CEO

China has rejected allegations of a Chinese espionage operation targeting Nvidia's chief executive, Jensen Huang, describing the claims as "groundless speculation".

US intelligence officials believe that Alice Huang, a Chinese businesswoman linked to Singapore-based data centre firm Megaspeed, was gathering information for Beijing on the US chip-making giant, according to a report by The New York Times.

The report said Alice Huang, who is of no relation to Jensen Huang, was under investigation over the possible diversion of advanced Nvidia AI chips to China and had developed a close relationship with Jensen.

Nvidia said their interactions were routine business engagements, while Beijing accused Washington of attempting to smear China. Alice Huang did not respond to the paper's request for comment.

The BBC has contacted Megaspeed and the White House for comment.

US intelligence agencies had been monitoring Alice Huang and concluded that she was acting on behalf of the Chinese government, according to unnamed sources cited by The New York Times.

Surveillance reportedly revealed communications between Alice Huang and an American citizen, who was subsequently identified as Jensen Huang through a process known as "unmasking".

It remains unclear what information Alice Huang - who is also known as Huang Le - allegedly passed to Beijing, how valuable it was, or when she is believed to have begun gathering intelligence.

At a regular briefing on Friday, Chinese foreign ministry spokesman Guo Jiakun said: "The report in question is based on groundless speculation and is nothing more than an attempt to smear China."

The paper's report comes amid longstanding US concerns about China's access to advanced computing technology, which is considered crucial to developing artificial intelligence systems.

Jensen Huang has argued that allowing Nvidia to sell more of its products to China is important for maintaining US competitiveness in the global AI industry.

But Washington has restricted exports of the most advanced Nvidia chips to China since 2022, citing national security concerns and the risk that the technology could strengthen China's military operations. There have however been some loosening of restrictions during Trump's administration.

US officials said they had caught several firms illegally trafficking the chips across the Chinese border. They have also investigated whether companies operating through third countries are helping Chinese businesses access the restricted technology.

Nvidia has said it complies with applicable export laws and that there is no evidence its chips have been smuggled into China.

In response to the allegations made by the Times, John Rizzo, a spokesman for Nvidia, said: "Jensen's interactions with Ms Huang are not unusual or unexpected".

He said customers like Megaspeed "receive ordinary business information - not sensitive Nvidia trade secrets - and zero information relevant to national security."

He added that allegations the Singaporean company was smuggling chips to China "were thoroughly investigated and debunked last year".

Megaspeed told the paper its current leadership took the allegations seriously and had appointed external legal advisers to conduct an internal investigation. The company also said it had informed the US government that it was willing to cooperate.

It is unclear how closely Alice Huang remains involved with Megaspeed.

Singapore seizes $42m mansion over Nvidia chip smuggling

The US is taking a cut from chip sales to China - what does it mean?

Trio charged over alleged plot to smuggle Nvidia chips from US to China