Nvidia Intervenes in Chip Smuggling Probe
Nvidia’s legal chief, Tim Teter, stepped into a federal inquiry examining potential AI chip smuggling by Megaspeed International, raising concerns about whether the Trump-era administration influenced Singapore’s detention of the firm’s executive, Alice Huang. Huang’s case now sits at the center of a controversy endangering Nvidia CEO Jensen Huang.
In the latter part of summer 2025, Tim Teter from Nvidia contacted Jeffrey Kessler, the Commerce Under Secretary responsible for US chip export restrictions. Teter inquired about the investigation into Megaspeed, specifically asking if Kessler’s Bureau of Industry and Security (BIS) was involved in the recent detention of Alice Huang by Singapore authorities.
Alice Huang was questioned by Singapore police and barred from leaving the country. Sources indicate that BIS was not involved in this action. Jensen Huang recently acknowledged an affair with Alice, contradicting earlier statements about their relationship, which is now under investigation by Nvidia’s board.
Megaspeed Investigation
An Nvidia spokesperson said that Teter was unaware of the affair at the time he called Kessler about Alice’s detention in Singapore. It is unclear whether Teter made any specific requests of Kessler related to his agency’s investigation into Megaspeed, which was separate from Singapore’s.
Following these events, BIS staff faced restrictions in their investigation of Nvidia. They were required to route all communication with Nvidia through Kessler or obtain his approval for any outreach. Additionally, they were instructed not to mention Megaspeed or its Malaysian subsidiary, Speedmatrix, in external communications.
Teter directly contacted BIS staff, requesting a meeting with one employee. The employee declined, prompting Teter to express confusion, as Kessler had permitted him to communicate with BIS staff. Teter’s specific intentions for the meeting remain unclear.
The BIS employees forwarded Teter’s email to Kessler, who instructed them to proceed with the case according to standard procedures. The New York Times previously reported on Teter’s attempts to contact BIS employees and their subsequent communication with Kessler.
BIS Probe
A spokesperson for the BIS said, “BIS conducts all enforcement strictly by the book. In late 2025, the Justice Department requested that BIS pause its efforts, despite the agency having enough evidence to move forward.
Nvidia submitted inventory reports to BIS, claiming all items were accounted for. However, trade records analyzed by Bloomberg revealed that Nvidia underreported the number of chips sold to Megaspeed through partners by 50,000 units, valued at billions of dollars.
In response to inquiries, Nvidia stated they had inspected additional Megaspeed warehouses containing the missing hardware but refused to disclose the exact number of chips found or provide further details. The company also declined to address significant discrepancies in Megaspeed’s data center operations.
Since these developments, Megaspeed’s largest data center landlord terminated their tenancy. Nvidia has not confirmed whether they conducted additional visits to Megaspeed’s facilities, despite promising to do so nearly a year ago. Megaspeed remains an official Nvidia Cloud Partner, a prestigious status in the data center industry.
Malaysian trade records from November 2025 indicate that Megaspeed imported 17,544 of Nvidia’s GB300s processors, valued at approximately US$787 million. Despite negative publicity surrounding Alice Huang since October 2025, when The New York Times reported on the US government’s investigation into Megaspeed, the company retains its Nvidia Cloud Partner status.
Approximately three months ago, Teter spoke with a White House official from Trump’s team. He suggested that Alice Huang’s role at Megaspeed was exaggerated, likely referring to her LinkedIn claim of being the company’s CEO, a position she has never officially held. Teter also mentioned that Nvidia had ceased business with Megaspeed due to the negative publicity.
Megaspeed has categorically denied the chip diversion allegations. Singapore’s investigation into activities related to alleged chip diversion concluded earlier this year with no adverse action against Megaspeed.
