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Justice Department takes over Nvidia customer probe after top Nvidia executive contacted Commerce

Megaspeed is under US and Singapore investigation over alleged chip smuggling to China, but says inspections found no evidence of violations.

The U.S. Department of Justice building in Washington in 2025
The U.S. Department of Justice building in Washington in 2025. Photo: Sdkb, CC BY-SA 4.0, Wikimedia Commons
15 news outlets reported this
Liberal9 outletsMegaspeed's murky footprint and Nvidia's role in probeCenter3 outletsNvidia stopped reporting Singapore revenue amid Megaspeed scrutinyConservative3 outletsCommerce's paused probe and export-control oversight questions
ABRAnews EditorialPublished 2 min read
Overview

The Justice Department has taken over an investigation into Megaspeed, a Singapore company that bought advanced Nvidia AI chips. The New York Times reports the case moved from the Commerce Department after a top Nvidia executive contacted Commerce officials. RedState reports Commerce agents had spent months on it and that Nvidia's general counsel, Tim Teter, emailed them after they declined a meeting in August 2025.

RedState says Justice is now pursuing a criminal inquiry. Commerce says its agents handled the case by the book. According to CBS News, Megaspeed is probed in the US and Singapore for allegedly smuggling chips into China.

CBS also says U.S. investigators say Alice Huang, whom it describes as one of Megaspeed's leaders, relied on industry contacts and a network of shell corporations to obtain 240,000 chips barred from export to China. Megaspeed says inspections by Nvidia and US and Malaysian authorities found no evidence of illegal transfers. Nvidia CEO Jensen Huang, who is not related to Alice Huang, has apologized for an affair with her.

Nvidia's board opened an independent investigation and says it has no reason to believe national security was compromised. A shareholder class action lawsuit alleges Huang concealed the relationship and misled shareholders about national security concerns it raised. Three Republican House committee chairmen asked Huang for a closed-door briefing on Nov. 18.

Key figures
  • nearly $5 billionAI chips and hardware Megaspeed bought from Nvidia in three years, per CBS NewsCBS News
  • 240,000chips banned for export to China that U.S. investigators say Alice Huang gained access toCBS News
  • over $300 millionexport-violation penalties imposed in 2025, per a Commerce sub-agency spokesmanDaily Caller
  • November 18date House chairmen asked Jensen Huang for a closed-door briefingRedState

Three sides of the story

9Liberal3Center3Conservative

15 news outlets reported this

Tap a color or swipe sideways to switch sides.

Liberal9 outlets

Megaspeed's murky footprint and Nvidia's role in probe

CBS News opens on Megaspeed's "unusual global footprint" and the questions over whether it is a front for the Chinese government. It describes a Singapore headquarters with little or no staff, an Australian subsidiary whose listed director is a 29-year-old newspaper vendor, and Malaysian offices in a storefront and a mall. It quotes China expert Jacqueline Deal, an adviser to State Armor: "If allegations are true, who will be fired?"

It also gives Megaspeed's statement rejecting "misleading information" and the Nvidia board's statement that it has no reason to believe national security was compromised. A New York Times headline says the Commerce Department probe "Was Halted After Nvidia Intervention," and reports that the matter was passed on to the Justice Department once a senior Nvidia figure had approached officials at Commerce.

Center3 outlets

Nvidia stopped reporting Singapore revenue amid Megaspeed scrutiny

The Journal's news report is headlined "Nvidia's Disappearing Singapore Sales Deepen Mystery Around Megaspeed." It says Nvidia stopped reporting Singapore revenue last year, just as scrutiny of Megaspeed was rising.

Conservative3 outlets

Commerce's paused probe and export-control oversight questions

RedState's lead piece asks whether the chips reached China. It reports Justice stepped in after an email from Nvidia's top lawyer. A Commerce official said Undersecretary Jeff Kessler replied that agents should handle the case by the book and gave no instructions on what to tell Nvidia.

It also carries Commerce's statement that the agents handled the case "by the book" and Nvidia's statement that it debunked the claims. The writer suggests House chairmen also hear from the agents. The Daily Caller, citing The New York Times, reports that the Commerce Department approved chip sales to dozens of Chinese companies, many with empty offices.

It quotes Liz Tobin, a former China director at the White House National Security Council: "a ton of concerns." It also carries Nvidia spokesman John Rizzo's reply. A separate RedState piece covers six pallets of Nvidia hardware, reportedly worth $11.4 million, that vanished on an Oakland-to-Texas run.

All sources: 17 articles from 15 outlets

Liberal (9)

Center (3)

Conservative (5)

Related
  1. NYT reports Chinese spy agency recruited woman close to Nvidia's CEO
  2. Justice Department takes over Nvidia customer probe after top Nvidia executive contacted CommerceThis story
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