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U.S. Commerce Department exits investigation, Justice Department takes over NVIDIA chip smuggling case

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According to people familiar with the matter, after NVIDIA representatives contacted Commerce Department investigators, the Justice Department asked the Commerce Department to suspend the part of the 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 Singapore company Megaspeed and whether the company transshipped NVIDIA chips to China, and withdrew from the investigation after NVIDIA representatives made contact. According to The New York Times, Megaspeed is run by Alice Huang, partner of NVIDIA CEO Jensen Huang, and the case was subsequently transferred to the Justice Department. An investigation by The Information said Alice Huang helped bring 240,000 embargoed NVIDIA chips into China, mostly H100 and H200 systems, and played a key role in facilitating at least $7.5 billion in AI GPU imports; she is also suspected of being a spy for China's Ministry of State Security. Huang has admitted to having had an extramarital affair with her, and Trump said he was not aware of it and that the FBI is investigating. According to The Information, the affair may push U.S. lawmakers to tighten chip export controls. SemiAnalysis estimated that despite export controls, more than 1.5 GW of restricted NVIDIA hardware has flowed into China, possibly equivalent to as many as 1.5 million GPUs, and said Huang's departure from NVIDIA may be related to this.

Generated by AI from reports · Updated 13 hr ago

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Now 47, -1% in 24 hours·Peak 60 (Nov 14 02:00)·2 developments in this range

Nov 11Nov 12Nov 13Nov 14Nov 15Nov 16Now 47Nvidia chips smuggled into China via a Singapore company2

Latest developments

3 developments
  1. · 1 report
    Analysts say Nvidia chips are being smuggled into China on a large scale
    Tom's Hardware: SemiAnalysis says large-scale smuggling of Nvidia AI GPUs into China may be the deeper reason for Jensen Huang's departure from Nvidia
  2. · 2 reports
    Nvidia chips smuggled into China via a Singapore company
    Tom's Hardware: According to reports, Alice Huang, in a three-year relationship with Jensen Huang, facilitated more than $7.5 billion in Nvidia AI GPU imports and helped ship 240,000 embargoed chips into China, mostly H100 and H200
  3. · 2 reports
    U.S. Commerce Department ends chip smuggling investigation after Nvidia intervention
    Firstpost: Report says U.S. Commerce Department withdrew chip smuggling investigation into Jensen Huang's partner's company after Nvidia intervened

Progress timeline

Nov 13
  1. Tom's Hardware
    SemiAnalysis says large-scale smuggling of Nvidia AI GPUs into China may be the deeper reason for Jensen Huang's departure from Nvidia

    SemiAnalysis says Jensen Huang's sudden departure from Nvidia may be linked not only to the exposure of an extramarital affair but also to large-scale illegal exports of advanced AI accelerators to China. In its latest newsletter, the semiconductor research firm estimates that despite US export controls, more than 1.5GW of restricted Nvidia hardware has flowed into China, or the equivalent of up to 1.5 million GPUs.

  2. Semafor
    The Information says Jensen Huang leaving Nvidia may affect China's AI landscape

    Nvidia turmoil may reshape China's AI landscape, as Washington tightens scrutiny or cuts off U.S. computing power supplies to China. According to The Information, an extramarital affair between Jensen Huang and Megaspeed executive Alice Huang may have facilitated at least $7.5 billion of Nvidia chips flowing into China, or may push U.S. lawmakers to tighten chip export controls. Computing constraints may benefit Chinese chipmakers, and Beijing is devoting more resources to advancing semiconductor self-reliance.

Nov 12
Nov 11
  1. Tom's Hardware
    According to reports, Alice Huang, in a three-year relationship with Jensen Huang, facilitated more than $7.5 billion in Nvidia AI GPU imports and helped ship 240,000 embargoed chips into China, mostly H100 and H200

    An investigation by The Information alleges that Alice Huang, an executive at Singapore-based company Megaspeed, helped ship 240,000 embargoed Nvidia chips into China, most of them H100 and H200 systems, and played a key role in facilitating $7.5 billion in AI GPU imports. Nvidia CEO Jensen Huang acknowledged having an extramarital affair with her; the relationship lasted three years, and Alice Huang is also suspected of being a spy for China's Ministry of State Security (MSS). The investigation also uncovered a maze of companies centered on Shanghai Century Litong and linked to Megaspeed, which had previously been accused of smuggling $2 billion worth of Nvidia chips.

Nov 10
  1. NBC News
    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.

  2. FirstpostSelected
    Report says U.S. Commerce Department withdrew chip smuggling investigation into Jensen Huang's partner's company after Nvidia intervened

    According to a New York Times report, the U.S. Commerce Department, after Nvidia intervened, dropped its AI chip smuggling investigation into Megaspeed, a company run by Alice Huang, partner of Nvidia CEO Jensen Huang, which was suspected of smuggling Nvidia chips to China; the case was subsequently referred to the U.S. Department of Justice. The report said the U.S. intelligence community believes Alice Huang is a Chinese spy, and Jensen Huang admitted on Sunday that he had an extramarital affair with her. In 2024, the intelligence community opened an investigation because Megaspeed imported billions of dollars of advanced Nvidia AI chips into Malaysia and built data centers in Asia for Chinese customers such as Alibaba. Trump on Monday defended Jensen Huang, saying he was unaware, and said the FBI is investigating. Nvidia's stock fell 4.27% to $178.67 after Jensen Huang admitted the affair and the board announced an investigation.

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