US Probing Singapore Company for Violating Chip Controls, Report Says
The Commerce Department is investigating Singapore-based data center company Megaspeed for potentially helping Chinese companies evade U.S. export controls on sensitive Nvidia chips, The New York Times reported last week. Megaspeed is reportedly poised to buy $2 billion of Nvidia AI technology over the next year, and the Commerce probe is looking into whether it has been indirectly funneling some of those chips to China, including to data centers in Malaysia and Indonesia that appear to be remotely serving Chinese customers. "U.S. officials have also been scrutinizing whether Megaspeed diverted some of those chips on to China, in violation of U.S. law," the report said.
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A Bureau of Industry and Security spokesperson said the agency "does not comment on active enforcement matters or confirm or deny the existence of any pending investigations." Megaspeed told The New York Times that it “is a Singapore-based company, operating fully in compliance with all applicable laws, including U.S. export control regulations.”