NEW: We are short Nvidia $NVDA. We believe Nvidia has a significant China problem. Please see our full report and disclosures now available on our website, link in bio.

2) $NVDA claims its China business went to "zero" after April 2025 U.S. trade restrictions. We believe that in reality, over 20% of Nvidia's FY 2026 compute revenues remained driven by China via illegal GPU diversion and Southeast Asian intermediaries.

3) $NVDA vouches for Megaspeed - its largest SEA chip buyer, under U.S. and Singapore investigation - as having no Chinese ownership and free of diversion concerns. We uncovered documents, however, that suggest Megaspeed was financed by Alibaba through a Singapore shell company.

4) Megaspeed's balance sheet exploded from $33M at year-end 2023 to $3.0B at year-end 2024, driven almost entirely by $2.9B in "refundable deposits received" from an un-named source. The same $2.9B was forwarded to subsidiaries like Speedmatrix. $NVDA

5) In June 2024 - two months prior to commencing operations - Speedmatrix pledged its assets as collateral to Apex Enterprise Solutions (Singapore).
Singapore filings reveal Apex's parent is Alibaba, and that Apex had made $4.1B in prepayments by March 31, 2025. $NVDA

6) Trade records reveal Speedmatrix imported $4.6B in product from December 2024 through January 2026, $4B of which originated from Aivres Systems, Inc., an $NVDA "Elite OEM" compute partner that assembles high-end Nvidia-equipped servers.

7) Aivres rebranded after parent Inspur was placed on the U.S. Entity List. Today, Aivres remains one-third Chinese-owned. Aivres also supplied to Shanghai's INF Tech, whose founder is an ex-Alibaba VP, and will reportedly supply ByteDance with $2.5B in Blackwells. $NVDA

8) Just last month, Bain's Bridge Data Centres (BDC) reportedly dropped Megaspeed as a tenant. BDC declined to explain why. One source told us BDC had caught Megaspeed using the facility as "a place...to install their dummy servers" and "divert the hardware." $NVDA

9) $NVDA CEO Huang has walked alongside Megaspeed at every step, and seems to have a close relationship with Megaspeed's Alice Huang. They partied together in June 2024 - same month as the Apex/Alibaba pledge, then dined together in May 2025 - just after U.S. trade restrictions.

10) Per a current Megaspeed employee, "every single time" $NVDA's CEO visits their facility, Alibaba reps come too. One former $NVDA employee told us that internally, Nvidia employees speculated as to the seemingly special nature of the relationship with Jensen.

11) In March 2026, the DoJ indicted three individuals tied to Supermicro (SMCI), including co-founder Wally Liaw, for allegedly smuggling $2.5B of $NVDA servers to China via "Company-1." Bloomberg has since reported "Company-1" is OBON Corp. We agree, but there's more...

12) We believe OBON is affiliated with Megaspeed, and, per one former high-level $NVDA employee, "Megaspeed is just the tip of the iceberg." The $2.5B indictment reflects one corridor of what we believe is a widespread operation across multiple $NVDA partners and intermediaries.

13) In October 2025, $NVDA partner YTL AI Cloud opened a $4.3B data center in Johor housing Blackwell servers. A current Megaspeed employee told us Megaspeed is "one of the most important customers" for YTL, but the parties conceal it, fearing regulatory repercussions.

14) $NVDA "Elite OEM" Giga Computing shipped over $500M in H200 & Blackwell servers to Speedmatrix and Novagate Cloud - another apparent Megaspeed offshoot. Novagate's Malaysian subsidiary was created two days after April 2025 restrictions announced.

15) Multiple experts told us $NVDA has had the means to detect diversion both via pre-sale indicators - e.g., recently-incorporated customers placing large orders, sales without warranties - and post-sale indicators - e.g., IP data, mismatched latency, servers "going dark."

16) $NVDA analysts treat China as potential upside to FY 27 numbers. We think the opposite - as Beijing cracks down, $NVDA is now actually losing the business it claimed it lost a year ago. Mainland operators tell us "very few orders", "a huge blow." We see a $30B+ air gap ahead.

17/17) We think this also helps explain $NVDA CEO Jensen Huang's recent behavior on the Dwarkesh Patel podcast, especially when confronted with questions surrounding China. We are short and believe shares are headed lower. See full report & disclosures at culperresearch.com