Megaspeed, the Singapore-based data center company at the center of the scandal surrounding Nvidia CEO Jensen Huang, pledged on Thursday, Nov. 12, to cooperate with U.S. government investigations.[1] The statement was the company’s first since Huang admitted to an affair with Alice Huang, a former Megaspeed executive whom U.S. authorities suspect of being a Chinese spy.[2]
Related: Nvidia Board Hires Wachtell’s Joon Kim to Lead Huang Probe as Shares Fall 5.47% and an Investor Sues.
What Megaspeed said
The statement was signed by Megaspeed’s chairman and CEO, Tan Yong Pong, who also goes by James Tan.[1] The company said it takes its obligation to comply with U.S. export control laws “extremely seriously.”[1] “Megaspeed is committed to working constructively and transparently with the U.S. government,” the statement said.[1]
Megaspeed said it had cooperated with inspections by the Commerce Department’s Bureau of Industry and Security.[2] It said it “stands ready to cooperate fully with any other relevant U.S. government authority.”[3] The company has hired a U.S. law firm to lead a “comprehensive census” of its graphics processing units and verify its export compliance.[2]
The statement did not address the allegations about Alice Huang.[3] She could not be reached for comment.[2]
Investigations already under way
NBC News reported that Megaspeed is under U.S. criminal investigation for allegedly smuggling American-made chips into China in defiance of export controls.[3] The company has not been charged. Singapore police said in October that they were investigating Megaspeed over “suspected breaches of our domestic laws.”[2] Megaspeed said in December that there was “no evidence” it had shipped chips into China illicitly.[1]
Megaspeed was one of Nvidia’s biggest customers in Southeast Asia.[3] Alice Huang was a top executive there between March and November 2023.[6] She and Jensen Huang are not related.[6]
China has called the spying claim “a groundless accusation, slander and a smear.”[2] On Thursday a Chinese foreign ministry spokesperson said the United States “should stop fabricating so-called espionage narratives,” NBC News reported.[3]
Warren and Coons seek records
Sen. Elizabeth Warren, a Massachusetts Democrat, and Sen. Chris Coons, a Delaware Democrat, asked the Trump administration to preserve all documents tied to Nvidia’s chip exports to China.[4] Their letter went to Commerce Secretary Howard Lutnick, Secretary of State Marco Rubio and White House chief of staff Stephen Miller.[4]
“This incident raises significant concerns about the federal government’s ability to effectively enforce our export controls and protect our national security,” the senators wrote.[4] They also asked for a congressional briefing on the national security risks of the suspected intelligence operation.[4]
Reuters reported allegations this week that Huang’s relationship with Alice Huang aided at least $7.5 billion in Nvidia chip shipments to China.[4] Those allegations have not been proven.
House Republicans weigh a subpoena
Three House Republican chairmen asked Huang on Nov. 5 to attend a joint closed-door briefing.[5] House China committee Chairman John Moolenaar said on Wednesday that Huang had until the end of the day to respond, and would likely be subpoenaed if he did not agree.[5] Foreign Affairs Chairman Brian Mast said his committee was preparing a subpoena.[5]
Huang has not said whether he will attend the briefing requested for Nov. 18.[6] Democrats will soon control both chambers of Congress and, with that, subpoena power.[3]
What comes next
Nvidia’s board met on Wednesday evening to discuss Huang’s future, and there was no word early Thursday on any outcome.[1] The meeting followed a New York Times report that Huang also had a relationship with an executive who reported to him.[3]
Background on the House request is in House Chairmen Ask Jensen Huang for Nov. 18 Briefing on Reported China Spy Link. More coverage is on The Boston Report’s AI news hub and in its AI companies guide.
Sources
- The Associated Press (via The Boston Globe): Megaspeed, firm central to Nvidia CEO Jensen Huang’s scandal, pledges to cooperate with US probe
- Reuters (via The Standard): Nvidia customer Megaspeed says it cooperated with US inspections, takes export control laws seriously
- NBC News: Megaspeed, chip firm at center of Nvidia scandal, pledges to cooperate with U.S. investigation
- Reuters (via The Standard): Senior US Democratic senators urge administration to preserve Nvidia export records amid China security concerns
- TechCrunch: Congress to call Jensen Huang in to answer for alleged Chinese spy affair
- BBC News: What we know as pressure builds on embattled Nvidia CEO Jensen Huang
Read next in Artificial Intelligence
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