'The end customer is Alibaba': Anonymous claim links Malaysia’s YTL AI Cloud to Nvidia–Megaspeed scandal - what’s actually proven

Nvidia Jensen Huang Megaspeed investigation: An anonymous source cited by short seller Culper Research has claimed that Alibaba was the end customer behind a data centre project involving Malaysian conglomerate YTL and Singapore-based cloud computing company Megaspeed. The allegation has added to scrutiny of Megaspeed as questions grow over its business relationships and the possible access of Chinese customers to Nvidia’s advanced AI chips.

In a report published on May 13, Culper quoted a person it described as a current Megaspeed employee who had previously worked for YTL. The source said, “Megaspeed is one of the most important customers for YTL, but we know that the end customer is Alibaba, but we don’t actually mention it up front… When I joined Megaspeed, I was surprised to notice that there are so many China staff working for Megaspeed…” as quoted in the research.

The employee also claimed that YTL was expected to construct and deliver a data centre for Megaspeed. The Alibaba connection, however, rests on the account of this unnamed source and has not been independently confirmed.

What Culper Research alleges about YTL, Megaspeed and Alibaba

Culper said LinkedIn profiles of Megaspeed employees referred to a presence at YTL Green. It also pointed to a rendering of YTL Green in a Megaspeed investor presentation for the company’s second computing cluster.

The research firm said neither YTL nor Megaspeed had publicly discussed their relationship. These details form part of Culper’s investigation but do not independently confirm the anonymous employee’s claim about Alibaba.

The report also examined Megaspeed’s financial records. Culper said the company’s balance sheet grew from approximately $33 million at the end of 2023 to $3 billion at the end of 2024. It attributed much of the increase to $2.9 billion in refundable deposits from an unidentified source.

Culper further cited Malaysian corporate filings showing that Megaspeed subsidiary Speedmatrix pledged its business as collateral to Singapore-based Apex Enterprise Solutions in June 2024. The research firm identified Alibaba as Apex’s corporate parent.

Apex’s financial statements, as cited by Culper, showed more than $4.1 billion in prepayments and approximately $4.2 billion in loans payable to Alibaba as of March 31, 2025.

However, these figures don't confirm that Alibaba directly financed Megaspeed’s Nvidia chip purchases or that the money was used to obtain chips restricted from export to China.

Culper also disclosed at that time that it held a short position in Nvidia, meaning it stood to benefit if the chipmaker’s share price fell.

Why Megaspeed has drawn scrutiny over Nvidia chips

Megaspeed provides cloud computing services to businesses in the Asia-Pacific region. Its model allows customers to rent computing capacity hosted in data centres across Southeast Asia, including systems powered by Nvidia GPUs.

The company describes itself as a core business partner of Nvidia’s computing power cloud business in the region. Customers can access computing resources remotely. Instead of owning and operating the hardware themselves.

That business model has drawn attention because US export controls restrict the sale of certain advanced AI chips to China. However, providing access to computing capacity hosted outside China does not, by itself, prove that an export-control violation has taken place.

Bloomberg reported in December 2025 that the US government was examining Megaspeed’s ownership structure and concerns that the company may have helped Nvidia chips reach China.

Megaspeed has rejected allegations of wrongdoing. In a statement on its website cited by CNBC, the company described earlier reporting as containing “misleading information and incorrect insinuations.” It said inspections by the US Bureau of Industry and Security, Malaysia’s Ministry of Investment, Trade and Industry, and Nvidia had found no evidence of illicit chip transfers or illegal activities.

Nvidia board investigates national security concerns involving Jensen Huang

The controversy has also drawn attention to Nvidia CEO Jensen Huang following reports about his relationship with Alice Huang, who has been linked to Megaspeed.

The New York Times reported on November 6 that US intelligence officials believed Alice Huang was a Chinese intelligence asset. The report also described concerns raised in a memo circulated among Trump administration policymakers about a Chinese businesswoman with close ties to Jensen Huang and allegations that she passed information about US AI chips to Beijing.

The House Select Committee on China described Alice Huang as a publicly reported Chinese intelligence asset in a November 5 statement. Committee leaders requested a briefing from Jensen Huang about his reported ties to her and the national security concerns raised by the reports.

Nvidia’s board has launched an independent investigation into the national security concerns raised in recent news reports. Huang said he supports the inquiry and will cooperate. Nvidia said it had “no reason to believe that either national security or NVIDIA secrets were compromised,” while confirming that the board would examine all available information.

Huang also acknowledged being unfaithful to his wife in a message to Nvidia employees.