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Commerce chip inquiry into Megaspeed was halted after Nvidia intervened

techNov 9, 202619705

The New York Times reported that the U.S. Commerce Department paused its probe into Singapore data center company Megaspeed after Nvidia intervened, and the inquiry was transferred to the Justice Department. Commerce agents had been investigating suspected diversion of advanced Nvidia A.I. chips to Megaspeed; the Justice Department requested that Commerce pause its work, and Commerce complied. Nvidia general counsel Tim Teter emailed Commerce seeking information about the inquiry, and agents were alarmed that Nvidia invoked the name of Mark Kessler, a Commerce official nominated by President Trump. The pause frustrated investigators who had spent months building the case and may have slowed Commerce from taking quicker action such as placing Megaspeed on a trade blacklist, a step Commerce has not moved forward with. No criminal charges have been announced and the matter now sits with the Justice Department as a criminal inquiry. The story also prompted a separate board inquiry into Megaspeed after reporting that the company’s executive was allegedly recruited by China’s Ministry of State Security.

Catherine Rampell
@crampell.bsky.social

Commerce Dept. Chip Inquiry Was Halted After Nvidia Intervention www.nytimes.com/2026/11/09/b...

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