Nvidia business partner Megaspeed denies illegally transferring AI chips to China amid spy scandal

Amid the spy scandal, Nvidia business partner Megaspeed, a Singapore AI data center company, issued a statement denying the illegal transfer of AI chips to China to circumvent US export restrictions. The company said that over the past six months it underwent multiple on-site inspections by the US Commerce Department's Bureau of Industry and Security, Malaysia's Ministry of Investment, Trade and Industry, and Nvidia, and that no evidence of violations was found; it also said it may take legal action over what it called misleading reporting. According to The New York Times, US intelligence officials briefed the Trump administration that Chinese businesswoman Alice Huang, who reportedly once worked at Megaspeed, targeted Nvidia CEO Jensen Huang for espionage; according to the BBC, she served as Megaspeed's managing director from March to November 2023. In a letter to employees on Sunday, Jensen Huang admitted to an extramarital affair and apologized.