Singapore’s Megaspeed Under Scrutiny for Potential Nvidia Chip Diversion to China

Megaspeed, a Singapore-based AI company, has rapidly become Southeast Asia's largest buyer of Nvidia hardware, raising concerns in Washington about potential diversion of advanced chips to China. The U.S. is investigating whether the firm violated export controls by channeling Nvidia products to Chinese entities or operates as a de facto Chinese company despite its Singaporean registration.

Singaporean authorities confirmed compliance checks are underway, while Malaysian officials monitor operations in the country hosting most of Megaspeed's activities. The company denies any wrongdoing, asserting full adherence to U.S. export regulations and maintaining it has no Chinese ownership. Nvidia's verification found no evidence of diversion, noting Megaspeed's cloud services fall within permitted activities.

The case highlights ongoing tensions in the global semiconductor trade, particularly around AI-capable chips. Megaspeed's business model—leasing Nvidia hardware to clients including China's Alibaba—operates in a regulatory gray zone as nations grapple with controlling dual-use technologies.