Updated
Updated · The New York Times · Nov 9
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.

Insights

How did a single email from Nvidia derail a major federal probe into AI chip smuggling to China?
What secrets did a Chinese spy uncover before a US investigation into a Singapore tech hub was mysteriously halted?
Are global logistics hubs unknowingly fueling China's AI ambitions through billions in smuggled tech hardware?