The case and Megaspeed’s role
According to a BBC report, Megaspeed said that Alice Huang, suspected of being a Chinese spy and linked to former Nvidia CEO Jensen Huang, left her executive role at the company in August of last year. Singapore-based Megaspeed is identified as the largest buyer of Nvidia chips in Southeast Asia. The company announced on Sunday that it had launched an internal investigation into its activities, saying it was aware of reports containing claims about its business, supply chain and global operations that, it said, are not supported by verifiable evidence.
The company maintained that it conducts legitimate, lawful activities and that it has appointed external legal counsel to conduct a thorough internal investigation. Megaspeed further specified that it designs and maintains its operational and supply-chain control frameworks to comply with all applicable laws and regulatory regimes, including U.S. export-control rules and the local rules of each market in which it operates.
The political case in Washington
The case has taken on a political dimension in the United States. Treasury Secretary Scott Bessent, the BBC reports, criticized the Commerce Department of cabinet colleague Howard Lutnick for failing to adequately oversee the export of high-end chips. Bessent told CNBC that several agencies had for months favored adding Megaspeed to the so-called entity list, the register that restricts U.S. trade with foreign companies and individuals, but that the decision rests with Commerce.
Lutnick has been summoned to testify next month before the Senate Banking Committee on his department's role in allowing Nvidia to export its advanced chips. Other congressional committees have asked Lutnick and his department to preserve all documents related to Nvidia and Jensen Huang. The BBC also reports that Megaspeed is suspected of having provided indirect access to Nvidia chips to Chinese companies through its data centers in Malaysia, Indonesia and Thailand.
The restrictions and the positions at stake
Nvidia is prohibited from selling its advanced chips to China. Singapore does not prohibit the transfer of advanced AI chips to foreign companies, but such transactions may violate U.S. export controls. The Singapore government has said it does not apply unilateral controls imposed by other countries, but expects all companies under its jurisdiction to comply with such regulations. China has denied that Alice Huang is a spy and has warned the United States against using the case as a pretext to impose a technology blockade on AI. The espionage allegations, the possible circumvention of restrictions and the outcome of the internal investigation announced by Megaspeed remain to be verified.
