Malaysia Probes Megaspeed Subsidiary Over Illegal AI Chip Exports
Malaysia is investigating SpeedMatrix for allegedly diverting Nvidia AI chips to China in violation of United States export controls.
The Ministry of Investment, Trade and Industry of Malaysia is investigating SpeedMatrix, a subsidiary of Singapore-based Megaspeed, to determine if AI chips were illegally re-exported to other countries. The probe follows allegations that Megaspeed diverted Nvidia AI chips to China, bypassing United States export rules. While importing AI chips into Malaysia is permit-free, the export or transshipment of high-performance US AI chips has required a permit since July 2025.
This investigation occurs alongside a parallel probe by Singaporean authorities into Megaspeed for the export of physical servers through Singapore to Malaysia. The situation is further complicated by a scandal involving former Nvidia CEO Jensen Huang, who resigned following an affair with Alice Huang, a former Megaspeed executive and suspected Chinese spy who has been barred from re-entering Singapore.
The combined impact of the export investigations and the leadership scandal at Nvidia has resulted in a market capitalization loss of nearly half a trillion dollars for the chipmaker.
