From Fortune · Angelica Ang · · 3m
The Nvidia chip smuggling case that shook Silicon Valley
Megaspeed, a Singapore cloud firm, is suspected of funneling $7.5 billion in restricted AI chips to Chinese companies through Southeast Asia.
In brief
Megaspeed, a Singapore cloud firm, is suspected of funneling $7.5 billion in restricted AI chips to Chinese companies through Southeast Asia. Megaspeed, a Singapore-based cloud provider, is suspected of moving $7.5 billion in restricted Nvidia chips to Chinese firms, exposing how companies exploit Southeast Asia to…
Megaspeed suspected of chip smuggling
Megaspeed, a Singapore-based cloud computing provider, is suspected of funneling advanced AI processors to Chinese companies, according to several media reports.
How Southeast Asia becomes a loophole
Chinese firms can access data centers in Singapore and Malaysia and their computing capacity without importing restricted semiconductors, but this also makes them attractive for circumventing U.S. controls.
“Chinese firms can access data centers in Singapore and Malaysia, and their computing capacity, without having to import restricted semiconductors”
Washington restricts top Nvidia chips to China
The U.S. restricts exports of Nvidia's top-end Blackwell and Rubin chips to China, fearing Beijing could use them to supercharge its AI ambitions.
Seven point five billion dollars moved through Megaspeed
According to The Information, Alice Huang, an executive at Megaspeed, used her personal relationship with Nvidia CEO Jensen Huang to move at least seven point five billion dollars worth of Nvidia chips through Megaspeed and…
Singapore investigates Megaspeed
Singapore says it is investigating Megaspeed for suspected breaches of domestic laws but rejected reports that authorities were investigating Alice Huang over espionage allegations. U.S. officials also investigated Megaspeed for potential export-control violations.
Megaspeed and Nvidia deny wrongdoing
Megaspeed has denied wrongdoing. Nvidia previously claimed it found no evidence of illicit chip transfers. Nvidia's board initiated an independent investigation into whether Huang was targeted by foreign intelligence.
Megaspeed's origins and ownership changes
Megaspeed was originally incorporated in two thousand fifteen as seven Road International, a Chinese gaming firm with ties to state-backed investors.
Speedmatrix received over two hundred shipments
In two thousand twenty-four, Tan Yong Pong established Speedmatrix, a Malaysia-based subsidiary of Megaspeed. Between June two thousand twenty-four and June two thousand twenty-five, Speedmatrix received over two hundred shipments of restricted Nvidia technology.
Chips powered Shanghai Century Litong data centers
The restricted chips were used to power data centers built by Shanghai Century Litong, a Chinese firm in which Alice Huang's younger sister, Huang Yu, is a founding shareholder.
Why Malaysia attracts data center investment
Malaysia drew ninety four billion dollars in data center investments between two thousand twenty-one and mid-two thousand twenty-six. It has ample land, relatively cheap electricity and water, and sits next to key submarine cables.
U.S. Senate considers closing the loophole
The U.S. House of Representatives passed the Remote Access Security Act, which would close the loophole allowing Chinese companies to use AI processors housed in other countries. The bill is now before the U.S. Senate.
The big picture
Megaspeed, a Singapore-based cloud provider, is suspected of moving $7.5 billion in restricted Nvidia chips to Chinese firms, exposing how companies exploit Southeast Asia to bypass U.S. export controls.
