Commerce probe of Megaspeed chip smuggling moved to Justice Department after Nvidia intervention

A Commerce Department investigation into Megaspeed, a Singapore data center company suspected of diverting Nvidia AI chips to China, was transferred to the Justice Department late last year after Nvidia general counsel Tim Teter emailed investigators seeking information, The New York Times reports. Teter wrote that Jeff Kessler, the Commerce under secretary overseeing export controls, had given Nvidia permission to reach out; investigators declined a meeting, and Kessler told them to proceed strictly by the book. Officials worried the contact could taint the case, and the Justice Department is now running a criminal inquiry. Megaspeed is led by Alice Huang, whom U.S. officials believe is a Chinese spy who had a relationship with Nvidia CEO Jensen Huang.