Commerce Halted Megaspeed Chip Probe After Nvidia Contact, Shifting Case to Justice
Updated
Updated · The New York Times · Nov 9
Commerce Halted Megaspeed Chip Probe After Nvidia Contact, Shifting Case to Justice
3 articles · Updated · The New York Times · Nov 9
Summary
A monthslong Commerce Department investigation into Megaspeed over suspected Nvidia AI chip smuggling to China was abruptly stopped late last year and transferred to the Justice Department.
The halt followed an email from Nvidia general counsel Tim Teter seeking information on the case and saying top Commerce official Jeff Kessler had authorized the outreach.
Investigators were alarmed that Nvidia invoked their superior’s name, and some officials viewed Kessler’s contact with the company as a possible breach of procedure that could taint the inquiry.
Megaspeed was led by an executive U.S. officials now believe was a Chinese spy, and scrutiny of Nvidia has intensified after revelations about CEO Jensen Huang’s relationship with a Megaspeed executive.
How did a single email from Nvidia derail a major federal probe into AI chip smuggling to China?
What secrets did a Chinese spy uncover before a US investigation into a Singapore tech hub was mysteriously halted?
Are global logistics hubs unknowingly fueling China's AI ambitions through billions in smuggled tech hardware?
$400 Billion Nvidia Meltdown: DOJ Criminal Case, Board Investigation, and China Espionage Allegations
Overview
In November 2026, Nvidia faced a crisis when CEO Jensen Huang admitted to an affair with Alice Huang, a former Megaspeed executive suspected by U.S. intelligence of working for China’s Ministry of State Security. This revelation triggered an independent board investigation into possible foreign targeting and executive conduct. Meanwhile, concerns over Nvidia’s contact with regulators led the Department of Justice to take over a probe into Megaspeed’s alleged illegal chip transshipments. The combined impact of the criminal investigation, national security fears, and leadership uncertainty caused Nvidia’s stock to plunge, erased hundreds of billions in market value, and prompted tighter U.S. export controls on offshore data centers serving Chinese clients.