Commerce Pauses Megaspeed Probe After Nvidia Contact

The Commerce Department paused its investigation into suspected chip diversion by Megaspeed after Nvidia general counsel Tim Teter contacted investigators in August 2025, and the Justice Department took over the case. The Justice Department is now conducting a criminal inquiry, according to people familiar with the matter.

The investigation focused on whether Megaspeed, a Singapore-based data center company, improperly routed Nvidia artificial intelligence chips into China. The reporting establishes suspicion, not a finding that illegal diversion occurred. No charges have been publicly announced, and the alleged diversion has not been publicly established.

In an email to investigators at the Commerce Department’s Bureau of Industry and Security, Teter said Under Secretary Jeff Kessler had authorized Nvidia to contact them about the inquiry. A Commerce official said Nvidia requested a meeting, which investigators declined. Teter then questioned the refusal, saying Kessler had said the company could communicate with bureau staff.

Investigators forwarded the email chain to Kessler. Hours later, he told them to handle the case strictly by the book, the Commerce official said. The...