Malaysia probes Megaspeed subsidiary over possible AI chip diversion

KUALA LUMPUR: Malaysia has opened an investigation into Megaspeed International's local subsidiary, Speedmatrix, amid allegations of possible AI chip diversion to other countries. This follows the recent resignation of Nvidia CEO Jensen Huang due to an alleged affair with Alice Huang, a suspected Chinese spy and former top executive at Megaspeed.

The controversy stems from claims that Megaspeed facilitated the export of Nvidia AI chips to China, despite US export controls aimed at limiting Beijing's AI technology development.

Speedmatrix, a tenant at Malaysian data centers, is permitted to bring AI chips into the country without a permit or license. However, since July last year, entities seeking to export, re-export, tranship, or transit high-performance US AI chips through Malaysia must obtain a permit. Giving false information to customs authorities regarding such items is considered a serious offense, according to Malaysia's ministry statement.

Miti, Megaspeed's parent company, is collaborating with Malaysian customs authorities to ascertain whether any of the chips imported into the country have been subsequently re-exported to other nations and whether these reexports adhered to the law. Miti emphasizes that Speedmatrix has never been cleared of any wrongdoing.

Furthermore, Malaysia is working alongside authorities in Singapore and the US to strengthen control measures where necessary. Speedmatrix is also under scrutiny in neighboring Singapore, where Singaporean authorities discovered servers containing the chips being exported from the city-state to Malaysia, potentially destined for other unreported destinations.