Commerce Halted Megaspeed Chip Probe After Nvidia Contact, Shifting Case to Justice
Updated
Updated · The New York Times · Nov 9
Commerce Halted Megaspeed Chip Probe After Nvidia Contact, Shifting Case to Justice
3 articles · Updated · The New York Times · Nov 9
Summary
A monthslong Commerce Department investigation into Megaspeed over suspected Nvidia AI chip smuggling to China was abruptly stopped late last year and transferred to the Justice Department.
The halt followed an email from Nvidia general counsel Tim Teter seeking information on the case and saying top Commerce official Jeff Kessler had authorized the outreach.
Investigators were alarmed that Nvidia invoked their superior’s name, and some officials viewed Kessler’s contact with the company as a possible breach of procedure that could taint the inquiry.
Megaspeed was led by an executive U.S. officials now believe was a Chinese spy, and scrutiny of Nvidia has intensified after revelations about CEO Jensen Huang’s relationship with a Megaspeed executive.