Commerce Department halted Nvidia chip smuggling probe after Nvidia contacted officials

A monthslong inquiry into a Singapore company suspected of diverting AI chips to China was abruptly moved to the Justice Department A US Commerce Department investigation into suspected smuggling of Nvidia’s artificial intelligence chips into China came to a sudden stop late last year. The halt came after Nvidia contacted the department. The case was then abruptly handed to the Justice Department. That transfer now sits at the center of a story involving export controls, a Singapore company, and a former executive whom US officials now believe to be a Chinese spy. What investigators were looking at The company under scrutiny is Megaspeed International, a Singapore-based firm. Commerce Department investigators suspected it of diverting Nvidia AI chips to China in violation of US export rules. The inquiry reportedly started in late 2024. Officials became interested after Nvidia equipment was discovered unpacked at a data center in Malaysia. The more striking element involves Alice Huang, a former executive at Megaspeed. US intelligence agencies consider her a Chinese intelligence asset, and she maintained a close relationship with Nvidia chief executive Jensen Huang. The investigatio...