US Department of Justice takes over chip investigation after Nvidia contacts federal investigators

According to people familiar with the matter, after Nvidia representatives contacted Commerce Department investigators, the US Department of Justice asked the Commerce Department to suspend the portion of its investigation it was responsible for and took over the investigation into whether one of Nvidia's cloud computing customers smuggled AI chips to China. The Commerce Department had been investigating Nvidia's relationship with the Singaporean company Megaspeed and whether that company transshipped Nvidia chips to China, and withdrew from the investigation after Nvidia representatives made contact.