It's hilarious that Ed can't even take the gift Jensen Huang has given AI skeptics and do something reasonably intelligent with it.
Just a few points to highlight how Ed's hatred doesn't even allow him to do a thoughtful, accurate analysis.
> The true scale may be far, far greater — and Culper Research believes, as mentioned, the total volume of kit going to Chinese customers amounts to 20 percent of the company’s revenues for FY 2026.
This is not what Culper Research suggested. Culper Research suggested that 20% of Nvidia's compute revenue "remained driven by" China.
"We believe that in reality, over 20% of Nvidia’s FY 2026 compute revenues remained driven by China"
Nvidia's total FY 2026 revenue was $215.9 billion. 20% of that is exactly $43.2 billion. This is the number Zitron claims went to China. In actuality, compute revenue for FY 2026 was about $162 billion, so 20% of that would be ~$32 billion. An $11 billion difference.
You would expect a journalist or expert observer to be able to pay attention to the details and get them right. It seems Ed just skimmed Culper's paper and, without even understanding that "compute revenue" is a subset of Nvidia's total revenue, eagerly used his calculator app to figure out what 20% of Nvidia's total revenue was.
Zitron made an even worse mistake with this claim:
> ...NVIDIA has inflated its earnings by more than $4.8 billion using sales to what appears to be a passthrough entity for customers in Mainland China.
The $4.8 billion is the reported value of the purchases Megaspeed made. Revenue is not earnings, so this did not inflate Nvidia's earnings.
How anyone can take seriously a commentator who doesn't know the difference between revenue and earnings is beyond me.
Ed Zitron is now in the "I told you so" mode, and rightfully so. First, he always makes sure to say he is not a financial analyst and is learning as he goes, but he always does his homework to expose all the crooked deals and it doesn't make the corruption any better when you say "they illegally smuggled only $32 billion of goods, not $43 billion". I don't understand what most of it means, or whether all of it is illegal, but I trust what he says because he has been talking about it (not only he, but Gamers Nexus and others) for a long time while other journalists kept silent.
> I don't understand what most of it means, or whether all of it is illegal, but I trust what he says because he has been talking about it ... for a long time
It's hilarious that Ed can't even take the gift Jensen Huang has given AI skeptics and do something reasonably intelligent with it.
Just a few points to highlight how Ed's hatred doesn't even allow him to do a thoughtful, accurate analysis.
> The true scale may be far, far greater — and Culper Research believes, as mentioned, the total volume of kit going to Chinese customers amounts to 20 percent of the company’s revenues for FY 2026.
This is not what Culper Research suggested. Culper Research suggested that 20% of Nvidia's compute revenue "remained driven by" China.
https://culperresearch.com/wp-content/uploads/2026/05/Culper...
Quote:
"We believe that in reality, over 20% of Nvidia’s FY 2026 compute revenues remained driven by China"
Nvidia's total FY 2026 revenue was $215.9 billion. 20% of that is exactly $43.2 billion. This is the number Zitron claims went to China. In actuality, compute revenue for FY 2026 was about $162 billion, so 20% of that would be ~$32 billion. An $11 billion difference.
You would expect a journalist or expert observer to be able to pay attention to the details and get them right. It seems Ed just skimmed Culper's paper and, without even understanding that "compute revenue" is a subset of Nvidia's total revenue, eagerly used his calculator app to figure out what 20% of Nvidia's total revenue was.
Zitron made an even worse mistake with this claim:
> ...NVIDIA has inflated its earnings by more than $4.8 billion using sales to what appears to be a passthrough entity for customers in Mainland China.
The $4.8 billion is the reported value of the purchases Megaspeed made. Revenue is not earnings, so this did not inflate Nvidia's earnings.
How anyone can take seriously a commentator who doesn't know the difference between revenue and earnings is beyond me.
Ed Zitron is now in the "I told you so" mode, and rightfully so. First, he always makes sure to say he is not a financial analyst and is learning as he goes, but he always does his homework to expose all the crooked deals and it doesn't make the corruption any better when you say "they illegally smuggled only $32 billion of goods, not $43 billion". I don't understand what most of it means, or whether all of it is illegal, but I trust what he says because he has been talking about it (not only he, but Gamers Nexus and others) for a long time while other journalists kept silent.
> I don't understand what most of it means, or whether all of it is illegal, but I trust what he says because he has been talking about it ... for a long time
https://danluu.com/zitron/
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