Nvidia Intervened in Megaspeed Probe; Case Went to Justice Dept
Nvidia's top lawyer contacted Commerce Department investigators in August 2025 about a chip-smuggling inquiry into Megaspeed. The case was later moved to the Justice Department, which now runs a criminal investigation. Nvidia says it routinely works with authorities.
Nvidia General Counsel Tim Teter contacted US Commerce Department investigators in August 2025 about a probe into Megaspeed, a Singapore-based data center company, before the case was moved to the Justice Department, according to a report published Monday.
Investigators suspected Megaspeed of diverting advanced Nvidia AI chips to China. The episode raises fresh questions about how much sway a chipmaker has over enforcement of export controls on its own products.
The email and the transfer
In his email, Teter said senior Commerce official Jeff Kessler had given him permission to reach out. Kessler oversees the department's export-control operations and reports directly to Commerce Secretary Howard Lutnick. Officials were reportedly alarmed by the reference to him.
The investigators declined Nvidia's request for a meeting. After seeing the email chain, Kessler told them to handle the case strictly by the book, according to a Commerce Department official. That official said he did not tell them to share information with Nvidia or to change investigative decisions.
Still, officials inside Commerce worried that contact with Nvidia could compromise the case. The Justice Department then asked Commerce to suspend its work and hand the case over, according to people familiar with the matter.
The transfer was unusual. Commerce investigators had spent months building the case, and they could have pursued administrative action to restrict Megaspeed's access to US technology.
What Megaspeed did
Megaspeed imported billions of dollars' worth of Nvidia AI equipment into Malaysia. It was building data centers across Southeast Asia for Chinese clients, including Alibaba. Running data centers for Chinese customers is not illegal in itself, but US authorities suspected some chips were illegally rerouted into China.
The Justice Department is now conducting a criminal investigation into the company.
Link to Jensen Huang
Attention on the case has grown after reports that Megaspeed executive Alice Huang, who reportedly had a personal relationship with Nvidia CEO Jensen Huang, was believed by US intelligence officials to be working for the Chinese government. Nvidia has announced that its board is investigating Jensen Huang's relationship with the executive.
The report also said the Commerce Department has not added a company to its Entity List in more than a year, the longest such gap in 18 years. The list is a key US tool for restricting foreign companies' access to American technology.
Nvidia has defended its dealings with officials. It says it regularly passes along information gathered in the field, asks for guidance and works with authorities to stop suspected chip smuggling while preserving lawful sales.
The report contains no evidence that Kessler ordered investigators to stop work or that Nvidia successfully shaped the outcome. And because the Justice Department's criminal investigation continues, the case has not been dropped.
