I'll tell you what's absurd: Believing the Chinese government sent a spy to honeypot Huang into providing chips to Chinese companies, while everything about their public policy has been designed to prevent exactly that.

The Chinese government wants Chinese companies to buy Chinese chips.

Do you find it implausible that there is any reason the Chinese government would want to spy on NVidia?

Indeed it seems absurd, but maybe the Chinese government sent a spy to honeypot Huang into destroying (indirectly) its own company instead - knowing how western culture react to such events.