Nvidia intervention halted U.S. Commerce Department inquiry into Megaspeed

A monthslong U.S. Commerce Department inquiry into a Singapore company suspected of diverting artificial intelligence chips to China came to a sudden stop late last year after Nvidia, the world's most valuable chipmaker, contacted the department, according to Crypto Briefing. The case was abruptly handed to the Justice Department, which handles criminal prosecutions rather than export licensing.

The company under scrutiny is Megaspeed International, a Singapore-based firm. Commerce Department investigators suspected it of diverting Nvidia artificial intelligence chips to China in violation of U.S. export rules after Nvidia equipment was discovered unpacked at a data center in Malaysia. A striking element involves Alice Huang, a former executive at Megaspeed whom U.S. intelligence agencies consider a Chinese intelligence asset and who maintained a close relationship with Nvidia chief executive Jensen Huang.

Nvidia disputes that anything improper happened, stating that earlier investigations turned up no evidence of wrongdoing and that it has accounted for every deployed graphics processing unit. Nvidia's board announced on November 8, 2026, that it had launched an independent investigation to examine claims that Jensen Huang may have been targeted by foreign intelligence, and Nvidia shares fell in after-hours trading following the news.

No charges have been publicly announced, and Singapore authorities have not publicly established any illegal diversion of U.S.-origin chips in their own local investigations. The Justice Department now holds the case, which can signal either a more serious criminal inquiry or a quieter track. Investors are left watching what the board's investigation concludes and whether the Justice Department brings any action.