Justice Department Takes Over Megaspeed Chip Probe From Commerce

The Justice Department took over a probe into whether Singapore-based Megaspeed International diverted Nvidia AI chips to China, and the Commerce Department paused its work on possible U.S. export-control violations.

In August 2025, Nvidia’s general counsel, Tim Teter, asked to meet with investigators at Commerce’s Bureau of Industry and Security (BIS). Teter said Commerce Under Secretary Jeffrey Kessler had permitted the contact. The investigators declined the meeting and forwarded the exchange to Kessler, who directed them to handle the case under department rules.

Later in 2025, the Justice Department asked BIS to pause its work while its National Security Division pursued a criminal inquiry into Megaspeed. Nvidia’s contact preceded that request, but the sequence does not establish that the contact caused the handoff. Commerce said it followed its procedures, and Nvidia said it regularly contacts officials to provide information and seek guidance.

Megaspeed denied illegal chip transfers and said inspections found no evidence of violations. U.S. rules limit exports of advanced AI chips to China.