Malaysia probes Megaspeed subsidiary over possible AI chip diversion

Malaysia's Ministry of Investment, Trade and Industry (MITI) said Friday it is investigating Speedmatrix, a local subsidiary of Singapore-based data centre company Megaspeed International, over the possible diversion of advanced AI chips to other countries, widening a scandal involving Nvidia. MITI said Speedmatrix is a tenant at Malaysian data centres and may bring AI chips into the country without a permit, but since July last year any entity seeking to export, reexport, transship or transit high-performance US AI chips from or through Malaysia must obtain a permit, and giving false information to customs authorities about such items is a "serious offence." The probe follows Nvidia chief executive Jensen Huang's resignation over an affair reportedly with Alice Huang, a suspected Chinese spy and former top Megaspeed executive; Megaspeed is under scrutiny for allegedly steering Nvidia AI chips to China despite US export rules.

KUALA LUMPUR — Malaysia said Friday it was investigating a subsidiary of Megaspeed International over the possible diversion of advanced AI chips to other countries, widening a scandal involving US chip giant Nvidia. It came the day after Nvidia boss Jensen Huang resigned over an affair, reportedly with Alice Huang -- a suspected Chinese spy and former top executive at Megaspeed, a Singapore-based data centre company. Megaspeed is under scrutiny for allegedly steering Nvidia AI chips to China despite US export rules designed to slow the development of artificial intelligence technology by Beijing. Malaysia's Ministry of Investment, Trade and Industry MITI said Megaspeed's local subsidiary Speedmatrix is a tenant at data centres in Malaysia and is allowed to bring AI chips into the country without a permit or license. But since July last year, any entity wanting to "export, reexport, transship or transit high performance US AI chips from or through Malaysia" must get a permit. Giving false information to customs authorities about such items is a "serious offence", the ministry said in