Nvidia intervened in US’ probe of Megaspeed chip smuggling case: Report
Despite the controversy, Megaspeed remains an official Nvidia Cloud Partner, a designation the chipmaker generally withdraws when companies stop doing business with it.
- Nov 10, 2026,
- Updated Nov 10, 2026 11:10 AM IST
Nvidia's general counsel Tim Teter intervened in a US government investigation into suspected AI chip smuggling by Singapore-based Megaspeed International, raising questions about the chipmaker's influence over an inquiry into alleged breaches of US export restrictions on China.
According to a report in Bloomberg, in late summer 2025, Teter called Commerce Under Secretary Jeffrey Kessler, who oversees US chip export controls, to ask whether the Bureau of Industry and Security (BIS) was involved in the Singapore government's detention of Alice Huang, a Megaspeed executive. Singapore police had brought Huang in for questioning and restricted her from leaving the country. BIS was not involved in the detention, according to people familiar with the matter.
The intervention has gained fresh attention amid a separate controversy involving Nvidia CEO Jensen Huang, who on Sunday admitted to having an affair with Alice after previously misrepresenting their relationship. Nvidia's board is investigating the matter. The company said Teter was unaware of the affair when he contacted Kessler.
MUST READ | Nvidia sued by shareholders over alleged Chinese spy links involving CEO Jensen Huang
In the weeks following Teter's call, BIS employees investigating Megaspeed were instructed to route all requests involving Nvidia through Kessler or seek his approval before contacting the company. They were also told not to mention Megaspeed or its Malaysian subsidiary, Speedmatrix, in external communications. Such restrictions were highly unusual and remained unique to Nvidia, according to people familiar with the matter.
Teter also contacted BIS employees directly, seeking a meeting with one official. After the employee declined, Teter said he did not understand the refusal, as Kessler had authorised him to communicate with agency staff. Kessler subsequently instructed employees to continue handling the case by the book.
The investigation subsequently stalled. In late 2025, the Justice Department, which was working alongside BIS, asked the agency to pause its efforts. BIS has made no further progress despite having sufficient evidence to proceed, the report said.
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The probe centres on allegations that Megaspeed diverted Nvidia chips in violation of US export restrictions. In November 2025, Malaysian trade records showed the company imported at least 17,544 Nvidia GB300 processors worth around $787 million.
Nvidia had earlier told the US government that its inspections of Megaspeed's data centres found the hardware where it was supposed to be. However, trade records analysed by Bloomberg indicated that the company's inventory calculations had undercounted chips sold to Megaspeed through hardware partners by 50,000 units, worth billions of dollars.
Nvidia later said it had inspected additional warehouses containing the missing hardware, but declined to disclose how many chips it found.
Megaspeed has denied the allegations, saying Singapore's investigation into alleged chip diversion concluded earlier this year without adverse action against the company. It also said its outreach to the US government had gone unanswered.
Despite the controversy, Megaspeed remains an official Nvidia Cloud Partner, a designation the chipmaker generally withdraws when companies stop doing business with it.
Nvidia's general counsel Tim Teter intervened in a US government investigation into suspected AI chip smuggling by Singapore-based Megaspeed International, raising questions about the chipmaker's influence over an inquiry into alleged breaches of US export restrictions on China.
According to a report in Bloomberg, in late summer 2025, Teter called Commerce Under Secretary Jeffrey Kessler, who oversees US chip export controls, to ask whether the Bureau of Industry and Security (BIS) was involved in the Singapore government's detention of Alice Huang, a Megaspeed executive. Singapore police had brought Huang in for questioning and restricted her from leaving the country. BIS was not involved in the detention, according to people familiar with the matter.
The intervention has gained fresh attention amid a separate controversy involving Nvidia CEO Jensen Huang, who on Sunday admitted to having an affair with Alice after previously misrepresenting their relationship. Nvidia's board is investigating the matter. The company said Teter was unaware of the affair when he contacted Kessler.
MUST READ | Nvidia sued by shareholders over alleged Chinese spy links involving CEO Jensen Huang
In the weeks following Teter's call, BIS employees investigating Megaspeed were instructed to route all requests involving Nvidia through Kessler or seek his approval before contacting the company. They were also told not to mention Megaspeed or its Malaysian subsidiary, Speedmatrix, in external communications. Such restrictions were highly unusual and remained unique to Nvidia, according to people familiar with the matter.
Teter also contacted BIS employees directly, seeking a meeting with one official. After the employee declined, Teter said he did not understand the refusal, as Kessler had authorised him to communicate with agency staff. Kessler subsequently instructed employees to continue handling the case by the book.
The investigation subsequently stalled. In late 2025, the Justice Department, which was working alongside BIS, asked the agency to pause its efforts. BIS has made no further progress despite having sufficient evidence to proceed, the report said.
DON'T MISS | FBI is looking into Nvidia’s Jensen Huang’s affair with alleged Chinese spy
The probe centres on allegations that Megaspeed diverted Nvidia chips in violation of US export restrictions. In November 2025, Malaysian trade records showed the company imported at least 17,544 Nvidia GB300 processors worth around $787 million.
Nvidia had earlier told the US government that its inspections of Megaspeed's data centres found the hardware where it was supposed to be. However, trade records analysed by Bloomberg indicated that the company's inventory calculations had undercounted chips sold to Megaspeed through hardware partners by 50,000 units, worth billions of dollars.
Nvidia later said it had inspected additional warehouses containing the missing hardware, but declined to disclose how many chips it found.
Megaspeed has denied the allegations, saying Singapore's investigation into alleged chip diversion concluded earlier this year without adverse action against the company. It also said its outreach to the US government had gone unanswered.
Despite the controversy, Megaspeed remains an official Nvidia Cloud Partner, a designation the chipmaker generally withdraws when companies stop doing business with it.