Megaspeed International issued its first public statement on Thursday, confirming it has hired a leading U.S. law firm to conduct an independent review of its export control compliance following allegations of diverting restricted Nvidia (NASDAQ: NVDA) chips to China.
The Singapore-based firm finds itself at the center of a high-stakes regulatory investigation involving potential violations of U.S. export controls. The controversy involves allegations that restricted high-performance graphics processing units (GPUs) were channeled into the Chinese market through Megaspeed, bypassing Washington’s national security restrictions.
In a statement signed by chairman and chief executive Tan Yong Pong, the company addressed the scrutiny regarding its trade practices. Megaspeed stated it “takes its compliance obligations under U.S. export control laws extremely seriously,” adding that compliance remains a “fundamental priority” for the organization.
The company is attempting to signal cooperation with federal regulators. According to MarketWatch, Megaspeed has already cooperated with inspections conducted by the U.S. Department of Commerce’s Bureau of Industry and Security. The firm expressed a commitment to working “constructively and transparently with the U.S. government.”
To address the specific allegations of chip diversion, the company is initiating a formal audit. Megaspeed told WION that the retained U.S. law firm will lead a “comprehensive census” of its GPU inventory to independently verify its adherence to export laws.
Megaspeed is at the center of the scandal engulfing Nvidia after being accused of skirting U.S. export control rules to deliver restricted Nvidia chips into China. Data reported by WION indicates that the Singaporean company has purchased more than $4.8 billion worth of Nvidia AI chips since June 2024.
The investigation is not merely about corporate logistics; it has become intertwined with national security concerns and personal allegations. Bloomberg reported that Alice Huang, a Megaspeed founder and former director, is currently in Beijing, a location that China’s security officials are reportedly aware of. This follows allegations that Huang, who had a relationship with Nvidia CEO Jensen Huang, may have been involved in efforts to divert technology.
While Nvidia has stated it has no reason to believe its trade secrets or U.S. national security information were compromised, the scrutiny on its distribution partners is intensifying.
The situation places Nvidia’s board in a difficult position. As reported by WION, the board is reportedly weighing whether to remove Jensen Huang following the scandal.
| Metric/Detail | Data Point | Source/Context |
|---|---|---|
| Nvidia Chip Purchases (Since June 2024) | >$4.8 billion | WION |
| Megaspeed Headquarters | Singapore | MarketWatch |
| Primary Regulatory Body | U.S. Dept. of Commerce (BIS) | MarketWatch |
| Key Executive Involved | Tan Yong Pong (Chairman and Chief Executive) | MarketWatch |
The company’s statement notably omitted any mention of Alice Huang, despite the heavy focus on her role in the alleged diversion of technology. The specific identity of the "leading U.S. law firm" has not been disclosed, leaving the depth of the internal audit unknown.
Megaspeed has cooperated with inspections by the U.S. Department of Commerce’s Bureau of Industry and Security and hired a law firm to lead a comprehensive census of its graphics processing units.
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