A US Commerce Department investigation into suspected diversion of Nvidia AI chips to China stopped after Nvidia contacted the department, and the case moved to the Justice Department. Nvidia disputes any wrongdoing, and its board has launched an independent investigation.
A US Commerce Department investigation into suspected smuggling of Nvidia's AI chips into China came to a sudden stop late last year. The halt came after Nvidia contacted the department, and the case was then handed to the Justice Department.
What investigators were examining
Investigators focused on Megaspeed International, a Singapore-based firm. Commerce investigators suspected it of diverting Nvidia AI chips to China in violation of US export rules.
The inquiry reportedly started in late 2024, after officials became interested when Nvidia equipment was discovered unpacked at a data center in Malaysia. Alice Huang, a former Megaspeed executive, is considered a Chinese intelligence asset by US intelligence agencies, and she maintained a close relationship with Nvidia chief executive Jensen Huang.
Nvidia rejects the allegations
Nvidia says earlier investigations found no evidence of wrongdoing and describes its dealings with Megaspeed as ordinary business. The company also says it has accounted for every deployed GPU and confirmed that Megaspeed has no Chinese shareholders.
Singapore authorities are running their own local investigations, and no illegal diversion of US-origin chips has been publicly established.
Board opens its own probe
Nvidia's board announced on November 8, 2026 that it had launched an independent investigation into claims that Jensen Huang may have been targeted by foreign intelligence. Nvidia shares fell in after-hours trading following the news.
No charges have been publicly announced. The key question is whether Nvidia's contact influenced the transfer or coincided with a handoff already planned, a point the source calls likely to be the thread critics pull hardest.
Source: Crypto Briefing
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