US Justice Department investigates Megaspeed over suspected smuggling of Nvidia chips to China — Deutsche Welle
The US Department of Justice is investigating Singapore-based company Megaspeed over suspicions of violating export restrictions and potentially illegally diverting high-performance Nvidia chips to China. The company denies wrongdoing and says it operates in compliance with export control requirements, Deutsche Welle reports.
Investigations in the US and Singapore
The US government launched the investigation in 2024. Megaspeed was initially examined by the US Department of Commerce, and the Department of Justice later took over the case. In December 2025, Bloomberg reported that Megaspeed had become Nvidia's largest buyer in Southeast Asia; US authorities were also examining the company's ownership structure and the possible transfer of chips to China.
That same month, Singapore police opened a separate investigation into a possible violation of local laws, without specifying which ones. According to DW, both investigations are considered ongoing.
On December 23, 2025, Megaspeed said there was no evidence of illegal chip transfers or other unlawful activity. The company also said it complies with all applicable export control rules.
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Services for technology companies
Megaspeed describes itself as an Nvidia cloud partner and says it provides computing services based on the company's entire range of graphics processing units, including the GB200 NVL72 system. Such companies, known as “neoclouds,” purchase chips and computing capacity and then lease them to clients through data centers.
The company manages access to data centers for major Chinese technology firms, including Alibaba. The Financial Times reported that Alibaba, through subsidiaries, provided Megaspeed with a loan in June 2024 and remains its largest customer.
In December 2025, Nvidia said its internal review of Megaspeed had found no evidence of chip diversion. The company also stated that Megaspeed is fully owned and operated outside China and has no Chinese shareholders.
