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US lawmakers are pressing federal agencies for answers over the possible diversion of restricted Nvidia artificial intelligence chips to China. The investigation centers on Singapore-based Megaspeed, an Nvidia customer accused in reports of helping Chinese businesses obtain advanced processors. No public finding has established that Nvidia or Megaspeed violated US export controls. The inquiry comes amid US restrictions on exports of advanced AI chips to China.
Senator Michael Bennet asked senior US officials on November 11 to explain the status of the Megaspeed investigation. In his letter, Bennet said the Commerce Department's Bureau of Industry and Security initially led the inquiry. He cited reporting that the Justice Department had since taken over the case.
Bennet requested details about shipments through Singapore, Malaysia and Indonesia. He also asked whether officials had considered restricting Megaspeed's access to US technology, including placing it on a government trade blacklist. His letter set a November 24 deadline for responses.
The senator cited reports that Megaspeed's operations had purchased at least USD 4.6 billion in advanced Nvidia chips, including Blackwell processors restricted from export to China. The amount comes from media reports cited in his letter, not a published finding by investigators.
Megaspeed has rejected claims about its business and supply chain that it says lack verifiable evidence. In a November 15 statement, the company said it conducted “legitimate and lawful business” and had hired outside legal counsel to review its operations. It also said former executive Alice Huang left on August 30, 2025.
On November 12, Megaspeed said it had cooperated with inspections by US Commerce Department officials. Chairman James Tan said compliance was a priority and the company was prepared to cooperate with other US authorities. Singaporean officials have separately investigated Megaspeed over suspected breaches of domestic rules.
Nvidia has previously said its own checks at Megaspeed facilities found no evidence that chips had been diverted. Separately, its board announced an independent investigation on November 8 into reports that then-CEO Jensen Huang had been targeted by a foreign intelligence effort. The board said it had no reason to believe company secrets or national security were compromised.
Nvidia announced Huang's resignation on November 12 and appointed finance chief Colette Kress as interim CEO. The board's internal review is separate from the reported federal investigation into Megaspeed's chip purchases.
A November 12 study by Unemployment Labs identified patterns associated with restricted Nvidia Blackwell chips in six Chinese AI models. Researchers examined models released by DeepSeek, Moonshot AI, MiniMax and Ant Group, comparing numerical patterns against tests on Nvidia hardware.
The team reported strong evidence that Blackwell chips had helped generate initial model values. However, its method could not establish where the hardware was located, who owned it or whether export laws were broken. The research did not identify Megaspeed as a supplier of those chips.
US authorities have pursued other alleged attempts to ship restricted processors to China. In December 2025, the Justice Department announced seizures of more than USD 50 million in Nvidia technology and cash during a separate chip-smuggling case. Bennet has asked federal officials to respond to his latest inquiry by November 24.
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