Commerce Dept. Chip Inquiry Was Halted After Nvidia Intervention
An anonymous reader quotes a report from The New York Times: Investigators at the Commerce Department were deep into a monthslong investigation of a Singaporean company that they suspected of smuggling Nvidia's artificial intelligence chips into China when their work came to a sudden halt late last year. The investigation centered on Megaspeed, a data center company led by an executive who U.S.…
The Commerce Department's probe into a Singaporean company suspected of smuggling Nvidia's AI chips into China abruptly ended in late 2022. The investigation, which focused on Megaspeed, a data center firm run by an executive believed to be a Chinese spy with ties to Nvidia CEO Jensen Huang, came to a stop after receiving an unusual email from Nvidia's general counsel.
Tim Teter, Nvidia's general counsel, informed Jeff Kessler, a top official at the department, that Nvidia had permission to engage with the agency regarding the case. This communication came amid concerns that Mr. Kessler, nominated to his role by President Trump, had violated government procedure by interacting with Nvidia, potentially tainting the investigation.
Mr. Teter's outreach to the department remains unclear, but it has only deepened scrutiny of Nvidia's possible influence on chip sales to China. The incident has sparked questions about the discussions Mr. Kessler, who reports directly to Commerce Secretary Howard Lutnick, may have had with Nvidia, raising the possibility that these conversations could become their own subject of inquiry.
Nvidia's general counsel reached out to the Commerce Department, prompting the transfer of the case to the Justice Department to prevent any potential compromise in the government's investigation of Megaspeed.
Written by urgent.news from Slashdot's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
