Nvidia’s outreach froze a chip-smuggling probe—and left Commerce on edge
Nvidia’s outreach froze a chip-smuggling probe—and left Commerce on edge
The inquiry began in 2024, when U.S. officials started examining Megaspeed, a Singapore-based data-center company importing billions of dollars’ worth of advanced Nvidia equipment into Malaysia. Its projects served Chinese customers, including Alibaba; officials feared some chips could be illegally rerouted to China despite U.S. export controls.
By 2025, the stakes had sharpened. U.S. authorities concluded that Megaspeed executive Huang Le, also known as Alice Huang, was working for the Chinese government, according to the report. Her acknowledged relationship with Nvidia chief executive Jensen Huang added a combustible personal dimension to scrutiny of Nvidia’s influence over Washington’s China-chip policy.
Then, in August 2025, Nvidia general counsel Tim Teter emailed Commerce investigators handling the case. Teter said Jeff Kessler, a senior Commerce official, had authorized Nvidia to contact them and sought information about the inquiry. Investigators declined a requested meeting and flagged the exchange internally. Kessler later told staff to continue following normal procedure; officials said he neither ordered disclosures to Nvidia nor directed investigators’ decisions.
But several current and former officials regarded the intervention as unusual. Because Kessler could potentially act as a neutral arbiter in any future Commerce case, they worried that his contact with Nvidia could create an appearance of improper influence and complicate enforcement. After the email, Commerce paused its work and the matter moved to the Justice Department, which is conducting a criminal investigation. The department would not comment on an ongoing case.
Nvidia rejects the implication that its outreach was an attempt to derail scrutiny. Spokesman John Rizzo said the company engages officials to “answer their questions,” share frontline information and seek guidance. He said Nvidia is committed to helping “stop potential smuggling activity” while serving legitimate customers.
Megaspeed, for its part, denies the thrust of the allegations. A representative said it was conducting an internal review of the claimed chip transfers and had repeatedly offered to assist U.S. investigators, without receiving a response.
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