NVIDIA allegedly interfered with a federal investigation into Megaspeed, a Singapore-based data center company suspected of smuggling embargoed AI accelerators into mainland China. According to a New York Times report, the probe focused on Megaspeed and its executive, Alice Huang, whom U.S. intelligence agencies identified as an intelligence asset for Beijing. The investigation into whether Megaspeed functioned as a multi-billion-dollar front to bypass trade controls hit a standstill in 2025 after the Commerce Department's Bureau of Industry and Security received correspondence from NVIDIA's General Counsel, Tim Teter.
Teter reportedly claimed that Jeff Kessler, a political appointee nominated by President Trump, had granted NVIDIA explicit authorization to contact the department directly regarding the probe. While the company maintained the communication was standard compliance procedure, officials within the department viewed the intervention as a violation of protocol that threatened the enforcement action. The interference reportedly undercut the momentum of investigators, leading the inquiry to be transferred from the Commerce Department to the Department of Justice.
The investigation into Megaspeed is linked to broader scrutiny regarding NVIDIA's high-end H200 AI GPUs being found in Chinese ghost offices. The probe also involves allegations of an intimate relationship between NVIDIA CEO Jensen Huang and Alice Huang. Huang is currently facing an independent board inquiry following admissions regarding his relationship with a suspected Chinese spy. Huang is scheduled to appear for a closed-door congressional briefing on November 18.
