US and Singapore Investigate Megaspeed for Alleged Illegal Nvidia Chip Supplies to China
The US Commerce Department and Singapore Police are investigating Megaspeed, a Singapore-based company, for allegedly helping Chinese firms illegally obtain restricted Nvidia AI chips valued at approximately $2 billion by circumventing US export controls. The company reportedly purchased the chips through a Malaysian subsidiary and shipped them to data centres serving Chinese customers, potentially violating US law.
What happened
The US Commerce Department is investigating Singapore-based data company Megaspeed to determine whether it helped Chinese companies circumvent US export restrictions on advanced Nvidia AI chips. Megaspeed, which separated from Chinese game company Seventh Avenue in 2023, established a subsidiary in Malaysia that rapidly purchased approximately $2 billion worth of advanced Nvidia chips.
Records show most of the chips came from a US subsidiary of a Chinese company that was sanctioned by the US for providing technology to the Chinese military. Megaspeed shipped these chips to data centres in Malaysia and Indonesia that appeared to provide services remotely to Chinese customers.
Reported impact
US officials are reviewing whether Megaspeed transferred some chips to China in violation of American law. Megaspeed's activities represent a potential circumvention of export controls on advanced semiconductor technology intended to restrict Chinese access to high-performance AI processing capability.
Index analysis
The investigation reportedly involves examination of Megaspeed's corporate structure, ownership, shipping records, and data centre operations across multiple jurisdictions. Megaspeed claims it is wholly owned and operated by a company headquartered outside China with no Chinese shareholders, and that it operates in full compliance with US export control regulations.
Governance controls
Singapore Police stated it is investigating whether Megaspeed violated local laws but did not provide further details. Nvidia's compliance team investigated Megaspeed and confirmed the company is wholly owned and operated by an entity based outside China with no Chinese shareholders; Nvidia stated it has been in contact with the US government regarding Megaspeed.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.