Singapore and US Launch Twin Probes Into Nvidia Customer Megaspeed
Singaporean authorities and the US Commerce Department have launched parallel investigations into AI computing firm Megaspeed, a major customer of American chipmaker Nvidia, over suspected breaches of export control laws.
Key Developments
- Singapore Police confirm ongoing investigations into Megaspeed for suspected domestic law breaches
- US Commerce Department separately probing whether company skirted American export controls
- Megaspeed purchased nearly $2 billion worth of Nvidia’s most advanced chips through Malaysian subsidiary
Investigation Details
According to CNBC reports, Singapore authorities are investigating whether Megaspeed helped Chinese companies bypass restrictions on US chip exports. The Singapore Police Force confirmed in an email that “investigations are ongoing into Megaspeed for suspected breaches of our domestic laws.”
Megaspeed, which was spun off from a Chinese gaming company in 2023, has acquired nearly $2 billion worth of Nvidia’s most advanced products through its subsidiary in Malaysia.
US Parallel Probe
The Singapore investigation follows a New York Times report revealing the US Commerce Department is also examining whether Megaspeed circumvented American export controls. The NYT report cited anonymous officials and people familiar with the matter.
These parallel investigations could increase scrutiny of Nvidia’s ability to track where its advanced chips ultimately end up and whether the company is fully complying with US regulations on sales to China.
Nvidia’s Response
Nvidia stated it has engaged with the US government on the matter and conducted its own inquiry, without identifying “any reason to believe products have been diverted.”
“NVIDIA visited multiple Megaspeed sites yet again earlier this week and confirmed what we previously observed—Megaspeed is running a small commercial cloud, like many other companies throughout the world, as allowed by U.S. export control rules,” an Nvidia spokesperson said in a statement shared with CNBC.
