“We were confident in the research initially, and we’re still confident in it now,” says Christian Lamarco, founder of Culper Research, whose May 2026 short report on Nvidia (NASDAQ: NVDA) flagged a China business scheme that has since exploded into a major scandal.
Over the weekend, Nvidia CEO Jensen Huang admitted to an affair with Alice Huang, a former Megaspeed executive, following a New York Times report alleging she was recruited by China’s Ministry of State Security. Nvidia’s board has initiated an independent investigation, sending its shares down more than 20% since the Culper report, including a drop on Monday.
Culper’s Prescient Report
When Lamarco published his report on May 13, 2026, Nvidia shares were near a record high, and Huang was preparing to accompany President Trump on a trip to Beijing. The report argued that Nvidia’s China business had not “gone to zero,” as the company claimed after U.S. export restrictions, but had merely changed shape.
The research claimed Chinese companies were still receiving Nvidia GPUs, either directly or through data centers in countries like Malaysia. It also highlighted an “uncomfortably close relationship” between Jensen Huang and Alice Huang, noting the Nvidia CEO was socializing with the former Megaspeed executive in public, including a dinner in Taipei on May 22, 2025. Some Nvidia employees wondered whether they had a “special relationship.”
“The initial comments were overall pretty negative,” Lamarco told MarketWatch on Monday. “Now, everybody and their mother is reaching out.”
Spy Allegations Impact Nvidia Revenue and Stock Value
- Nvidia’s China revenue stream, allegedly rerouted through Southeast Asian middlemen like Megaspeed, faces intense scrutiny following the spy allegations.
- The company's stock has lost a large amount of market value since Culper's report, reflecting investor fear of sanctions and reputational damage.
- Culper’s model of short-selling with partner payouts is being discussed as a model in the activist short-selling space.
The Financial Mechanism of the Scheme
Culper’s report alleged that Megaspeed’s explosive growth was fueled by Chinese capital. The firm’s total liabilities and equity grew from $33 million at the end of 2023 to around $3 billion by the end of 2024, much of it in the form of refundable deposits from an unidentified source.
According to the Financial Times, documents show Alibaba (NYSE: BABA) lent money to Megaspeed through subsidiaries. The report created a financial link between Megaspeed and a subsidiary of Alibaba, suggesting a sophisticated circuit to bypass U.S. chip export controls.
“Those two details seemed to conflict,” Lamarco said of Nvidia’s claims of a China collapse and its booming Southeast Asian sales. Lamarco told MarketWatch that previous media reporting on Nvidia’s relationship with Singapore-based Megaspeed had helped inspire him to dig deeper.
The value of Megaspeed's liabilities and equity grew by an enormous percentage in a single year. The money trail leads back to a Chinese entity that helps China access Nvidia chips.
A Wider Network of Middlemen
Lamarco’s investigation suggests Megaspeed is not an isolated case. In Monday’s interview, he stated his firm had found potential circumstantial evidence linking Nvidia to at least six other Southeast Asian companies with “red flags” similar to Megaspeed.
The effects are large.
| Company | Key Metric (2024) | YoY Change |
|---|---|---|
| Megaspeed (Liabilities & Equity) | $3.0 billion | Grew substantially |
| Nvidia (NVDA Stock Price) | Price at time of report | -20% (Since report) |
Curtailing China Business Could Slow AI Infrastructure Deployment
The broader economic impact is also a concern. If Nvidia is forced to curtail its China business further, it could slow the deployment of AI infrastructure in both the U.S. and China.
What’s Next for Nvidia
The independent investigation into Jensen Huang’s relationship with Alice Huang and potential foreign-intelligence efforts is a critical first step.
For Christian Lamarco and Culper Research, the Nvidia saga is a validation of their approach. The firm, founded in 2019, has built a reputation on rigorous, independent research that cuts through corporate narratives.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
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