Singapore Probes Nvidia Client Megaspeed Over China Export Curbs

Singapore police are investigating Megaspeed, a customer of Nvidia, for allegedly helping Chinese firms evade U.S. chip export restrictions. The probe, confirmed by the Singapore Police Force, runs parallel to a U.S. Commerce Department investigation into similar allegations, raising questions over Nvidia’s oversight of its global supply chain.

“NVIDIA visited multiple Megaspeed sites and confirmed what we previously observed — Megaspeed is running a small commercial cloud, as allowed by U.S. export control rules,” the company told CNBC.

Megaspeed, which spun off from a Chinese gaming firm in 2023, reportedly bought nearly $2 billion worth of Nvidia’s top AI chips via its Malaysian subsidiary. Authorities are examining whether those chips were indirectly used to serve Chinese customers, in violation of U.S. export laws.

The case underscores wider concerns over loopholes in American export restrictions on AI processors and the rise of black-market chip trade. Earlier this year, Singapore launched a separate probe into suspected Nvidia chip smuggling, while Malaysia has since begun requiring export permits for all AI chip shipments.

U.S. lawmakers have proposed mandating tracking systems for advanced chips, though Beijing has criticized the plan and temporarily halted Nvidia imports in response.