Nvidia’s $7.5 Billion China Chip Scandal Leads to This Shanghai-Listed AI Company

A little-known Chinese AI computing company at the center of a reported $7.5 billion Nvidia Corp (NASDAQ:NVDA) chip network has an unexpected connection to a publicly traded business. Shanghai Century Litong is a controlled subsidiary of Jiangsu Lettall Electronic Co., whose AI computing business generated about 1.2 billion yuan ($180 million) in revenue last year, putting a listed AI business in the spotlight.

A 450 Million Yuan Investment Created the Corporate Link

The Information reported Tuesday that Alice Huang, a Chinese businesswoman whom the U.S. government reportedly identified as a Chinese intelligence asset, helped facilitate at least $7.5 billion in Nvidia chip shipments to Chinese companies through a China-Singapore company network.

At the center of that network was Shanghai Century Litong, founded in June 2023. According to The Information, Alice Huang, her sister and her husband used a network of companies to acquire Nvidia chips, with Century Litong securing preferred cloud-partner status by October that year.

The connection to Jiangsu Lettall is documented in the latter’s June 2023 stock-exchange filing. The company announced a 450 million yuan ($67.5 million) capital injection into Century Litong, securing a 90% stake. The remaining 10% was held by Century Longteng, its original founding shareholder.

The investment was intended to build an AI computing rental business, with servers deployed in Shanghai and Shenzhen data centers. Jiangsu Lettall’s 2025 annual report continues to identify Century Litong as a controlled subsidiary.

The AI Business Is Already Generating Serious Revenue

Jiangsu Lettall reported 1.2 billion yuan ($180 million) in AI computing revenue for 2025, up 163.53%. The business accounted for approximately 36% of the company’s 3.31 billion yuan ($497 million) in total revenue, while net profit jumped 1,088.59% to 292.6 million yuan ($44 million).

Century Litong itself reported approximately 1 billion yuan ($150 million) in revenue and 230.1 million yuan ($34.5 million) in net profit, according to the annual filing. The parent’s AI computing segment posted a 49.69% gross margin, compared with 9.98% for its manufacturing business.

The figures show that AI computing has become a meaningful earnings driver for the listed company, not simply a side investment.

What Investors Need to Watch Next

The allegations do not establish wrongdoing by Jiangsu Lettall or its executives. Reuters said Shanghai Century Litong was not immediately available for comment.

Nvidia’s partner directory currently lists Century Litong as a cloud partner with computing capabilities. That listing alone does not establish the preferred status or chip allocations described in The Information’s report.

For investors, the critical question is whether the reported chip network triggers further scrutiny of Century Litong’s Nvidia relationship, customers or ability to maintain its computing business.

With AI computing contributing more than a third of its parent’s revenue, any disruption could have consequences well beyond the original scandal.

NVDA Price Action: Nvidia shares were down 0.88% at $177.09 in premarket trading Tuesday, according to Benzinga Pro data.

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