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Malaysia probes Megaspeed subsidiary over possible AI chip diversion

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…

Malaysia probes Megaspeed subsidiary over possible AI chip diversion

KUALA LUMPUR — Malaysian authorities are probing a subsidiary of Megaspeed International over the potential smuggling of sophisticated AI chips to foreign nations, expanding a controversy involving US chipmaker Nvidia. The news arrives following the abrupt departure of Nvidia's CEO, Jensen Huang, amid allegations of an affair with Alice Huang, believed to be a Chinese spy and former top executive at Megaspeed, a Singapore-based data center firm.

Megaspeed faces accusations of facilitating the transfer of Nvidia AI chips to China, despite stringent US export laws aimed at curbing China's artificial intelligence advancement. Malaysia's Ministry of Investment, Trade and Industry (MITI) revealed that Megaspeed's local subsidiary, Speedmatrix, operates within data centers in the country and is permitted to import AI chips without a permit or license.

However, since July last year, any individual or entity seeking to export, re-export, transship, or transit high-performance US AI chips from or through Malaysia must obtain a permit. MITI emphasized that providing false information to customs authorities regarding such items constitutes a serious offense.

Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

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