Short Seller Culper Research Targets Company Over Alleged China Revenue Ties

Culper Research disclosed a short position against the company and alleged that it continues to derive significant revenue from China despite U.S. trade restrictions. The firm said more than 20% of the company's fiscal 2026 compute revenue is tied to China through alleged GPU diversion and Southeast Asian intermediaries.

Culper Research specifically pointed to Singapore-based Megaspeed, alleging hidden financial links to Alibaba and possible rerouting of servers through Malaysia. The report also addressed supplier relationships and alleged attempts to bypass U.S. export controls.

The company has previously stated it found no evidence of diversion in its global data center checks.

According to the short seller's report, the alleged China exposure involves both direct and indirect channels. The firm said the revenue share exceeds 20 percent for the fiscal year that began in February 2025. Culper Research said the arrangements rely on intermediaries in Southeast Asia to move restricted goods.

The report identified Malaysia as one location used for possible rerouting of Nvidia-powered servers.

The company previously conducted global data center checks and reported finding no evidence of product diversion. It has maintained that its compliance processes limit sales of restricted items to authorized customers only. U.S. export controls have tightened restrictions on advanced chips to certain Chinese entities in recent years.

The short seller's disclosure highlights ongoing questions about enforcement and third-party compliance in the supply chain.