Nvidia Contact Preceded Transfer of Megaspeed Chip Probe

By Nathan Brooks

The Justice Department is now conducting a criminal investigation into a suspected Nvidia chip-smuggling case involving Singapore-based data-center operator Megaspeed International, according to The New York Times. Commerce investigators spent months building the case before the transfer. Axios reported that Megaspeed International bought more than $4.8 billion in Nvidia chips over roughly two years.

What does the case transfer change for Nvidia?

The New York Times reported Monday that Nvidia General Counsel Tim Teter emailed Commerce Department investigators in August 2025 about the Megaspeed probe. Teter sought information and said senior Commerce official Jeff Kessler had given him permission to contact the investigators.

Kessler oversees export-control operations and reports directly to Secretary Howard Lutnick, the Times said. Investigators declined Nvidia's request for a meeting. After receiving the email chain, Kessler instructed them to continue handling the case strictly by the book.

A Commerce official told the Times that Kessler did not direct investigators to share information with Nvidia or intervene in their investigative decisions. The episode nevertheless prompted internal discussions at Commerce, with officials raising concerns that the department's interactions with Nvidia could compromise the investigation, the Times reported.

The Justice Department subsequently requested that Commerce suspend its work and transfer the case, according to people familiar with the matter and reported by The New York Times. DOJ now leads the suspected-diversion investigation as a criminal matter.

The New York Times described the transfer as unusual because Commerce investigators had spent months building the case and could have pursued administrative action to restrict Megaspeed's access to U.S. technology. For Nvidia, the immediate practical change is procedural: Commerce's administrative track gave way to a Justice Department criminal probe.

The Times found no evidence that Kessler ordered investigators to halt their work or that Nvidia altered the outcome. The active probe means the case has not been dropped.

The Commerce Department has not added a company to its Entity List in more than a year, according to the Times. That is the longest such stretch in 18 years; the Entity List is a key tool for restricting foreign access to U.S. technology. It remains unclear whether the pause reflects a policy shift or case-by-case deliberation.

Megaspeed's scale and Alice Huang's connections

Megaspeed had imported billions of dollars' worth of Nvidia AI equipment into Malaysia while developing data centers across Southeast Asia to serve Chinese clients, including Alibaba, the Times reported. Serving Chinese customers is not itself illegal, but U.S. authorities suspected that some chips were illegally rerouted into China.

Alice Huang, also known as Huang Le, is a Chinese citizen with a reported background in journalism and finance. Axios said she led Megaspeed International, which became an official Nvidia Cloud Partner in 2023 and purchased more than $4.8 billion in Nvidia chips over roughly two years.

The company's balance sheet grew from $33 million at the end of 2023 to nearly $3 billion a year later. Axios reported that much of the increase involved approximately $2.9 billion in refundable deposits from an unidentified source.

The Times reported that Megaspeed executive Alice Huang had a personal relationship with Nvidia CEO Jensen Huang. U.S. intelligence officials believed that she was working for the Chinese government, the report said. Nvidia announced Sunday that its board was investigating Jensen Huang's relationship with her.

Axios reported that Singapore police investigated Megaspeed in October 2025 over possible violations of local laws, though authorities did not disclose specific offenses. Employees told the Wall Street Journal that Alice Huang continued leading the business after her formal resignation.

Three chip-security bills reach the Senate package

Three chip-related measures—the AI Overwatch Act, the Chip Security Act and the Match Act—are slated for possible inclusion in the fiscal 2027 defense authorization bill, Reuters reported. The House Foreign Affairs Committee advanced all three earlier this year, and they now sit in the Senate NDAA management package.

Senators Elizabeth Warren (D-Mass.) and Jim Banks (R-Ind.) said Monday: "Nvidia CEO Jensen Huang's confirmation of a relationship with a suspected spy for China's intelligence service makes these national security concerns even more urgent." They also called for passage of the AI Overwatch Act in the NDAA.

Three Republican House committee chairs have requested a closed-door briefing with Jensen Huang on November 18. The briefing would cover his interactions with Alice Huang and how Nvidia protects itself against foreign threats.

Nvidia's position and the open questions

Nvidia defended its engagement with government officials. The company said it regularly provides information gathered from the field, requests guidance and works with authorities to stop suspected chip smuggling while preserving lawful sales.

It also said it had "no reason to believe that either national security or NVIDIA secrets were compromised," while saying its board inquiry would examine all available information.

The case remains open: Justice Department prosecutors may bring charges against Megaspeed or individuals, and Nvidia's board inquiry is still underway. The next concrete tests are whether federal prosecutors file charges and what the board finds, leaving export-control compliance and Jensen Huang's governance under active scrutiny.