Nvidia's general counsel, Tim Teter, reportedly intervened in a US government investigation concerning alleged AI chip smuggling by Singapore-based firm Megaspeed International. This intervention, detailed in a recent report, has raised significant questions about the chipmaker's potential influence over inquiries into breaches of US export restrictions, particularly those involving sensitive technology destined for China.
Intervention by Nvidia's General Counsel
According to the report, Teter contacted Commerce Under Secretary Jeffrey Kessler, who oversees US chip export controls, in late summer 2025. The purpose of the call was to inquire whether the Bureau of Industry and Security (BIS) was involved in the detention of Alice Huang, a Megaspeed executive, by Singapore police. Sources familiar with the matter confirmed that BIS was not involved in Huang's detention.
Investigation Stalls Amidst Unusual Restrictions
Following Teter's call, BIS employees investigating Megaspeed were reportedly given unusual instructions. They were told to route all requests involving Nvidia through Kessler or seek his explicit approval before contacting the company. Furthermore, employees were instructed to avoid mentioning Megaspeed or its Malaysian subsidiary, Speedmatrix, in external communications. These restrictions were described as highly unusual and unique to the Nvidia case.
The report also notes that Teter directly contacted BIS employees, seeking a meeting with one official. After the official declined, Teter reportedly expressed confusion, claiming Kessler had authorized him to communicate with agency staff. Kessler later instructed employees to handle the case strictly by the book.
Subsequently, the investigation into Megaspeed stalled. In late 2025, the Justice Department, which was collaborating with BIS, requested the agency pause its efforts. The report indicates that BIS has made no further progress despite possessing sufficient evidence to proceed.
Allegations of Chip Diversion and Nvidia's Internal Review
The probe centers on allegations that Megaspeed diverted Nvidia chips in violation of stringent US export restrictions. Malaysian trade records from November 2025 show that Megaspeed imported at least 17,544 Nvidia GB300 processors, valued at approximately $787 million.
Nvidia had previously informed the US government that its inspections of Megaspeed's data centers confirmed the hardware was in its intended location. However, trade records analyzed in the report suggest that Nvidia's inventory calculations had undercounted chips sold to Megaspeed via hardware partners by a staggering 50,000 units, representing billions of dollars in value. Nvidia later stated it had inspected additional warehouses where the missing hardware was found, but declined to disclose the exact number of chips recovered.
Ongoing Partnership and Broader Context
Megaspeed has denied the allegations, stating that Singapore's investigation into the alleged chip diversion concluded earlier in the year without any adverse action against the company. Megaspeed also claimed its attempts to contact the US government had gone unanswered.
Despite the ongoing controversy, Megaspeed maintains its status as an official Nvidia Cloud Partner, a designation typically withdrawn when business relations cease. The intervention has also gained renewed attention amidst a separate controversy involving Nvidia CEO Jensen Huang, who admitted to an affair with Alice Huang, the Megaspeed executive, with Nvidia's board now investigating the matter. Nvidia stated that Teter was unaware of the affair when he contacted Kessler.