Nvidia-linked Megaspeed, where suspected Chinese spy worked, issues fresh statement

by Girls Rock Investing
Alice Huang with Jensen Huang.

Megaspeed, the Singapore-based company at the center of controversy surrounding Nvidia CEO Jensen Huang, has said it will independently review its export-control compliance practices.

The high-performance computing provider, which rents out computing capacity for artificial intelligence workloads, operates as an official partner in Nvidia’s Cloud Partner Network in the Asia-Pacific region.

The company even offers customers access to Nvidia’s GB200 NVL72 and HGX H100 systems.

US authorities suspect that one of Megaspeed’s senior executives, Alice Huang, targeted Nvidia CEO Huang on behalf of the Chinese government.

Megaspeed is under investigation in both Singapore and the United States.

Investigators are also examining whether Megaspeed illegally smuggled billions of dollars’ worth of restricted Nvidia chips into China and served as a vehicle for Chinese intelligence operations.

Megaspeed has repeatedly denied the allegations and reiterated its position on Thursday, while pledging to work with US authorities on its compliance practices.

Megaspeed pledges cooperation with US authorities

Megaspeed is committed to working constructively and transparently with the U.S. government.

Megaspeed CEO
Tan Yong Pong

In a statement signed by its Chairman and CEO, Tan Yong Pong, James, Megaspeed said it takes its obligations under US export-control laws seriously and remains committed to cooperating with government authorities.

“Megaspeed takes its compliance obligations under U.S. export control laws extremely seriously”

Megaspeed said it had cooperated with inspections by the US Department of Commerce’s Bureau of Industry and Security (BIS) and stood ready to cooperate fully with any other relevant US government authority.

The company also said it had engaged a leading US law firm to conduct an independent review of its operations.

The law firm will “lead a comprehensive census of its graphics processing units (GPUs) and independently verify its export control compliance practices.”

“Megaspeed welcomes appropriate government scrutiny and is committed to demonstrating through concrete actions that it operates responsibly, transparently, and in accordance with applicable US laws,” the statement concluded.

‘Previous inspections found no violations’

The latest statement follows another communication earlier this week in which Megaspeed said multiple inspections over the past six months had found no evidence of wrongdoing.

The company said it had undergone on-site inspections and reviews by several institutions, including BIS, Malaysia’s Ministry of Investment, Trade and Industry, and Nvidia.

“We want to be absolutely clear: over the past six months, our company has undergone multiple on-site inspections and reviews by key institutions, including the Bureau of Industry and Security of the US Commerce Department, the Ministry of Investment, Trade and Industry of Malaysia, and NVIDIA,” it said.

“These thorough investigations have confirmed that there has been no evidence of any violations concerning the illicit transfer of chips or any illegal activities, and this demonstrates that we are a compliant and legitimate company.”

Megaspeed has maintained that it operates legitimately despite the allegations surrounding its business and its connections to the Nvidia controversy.

Megaspeed was initially registered in 2015 under the name 7Road International before changing its name to Megaspeed International in March 2023, according to its business filings.

The company’s latest undertaking to independently examine its GPU inventory and export-control practices comes as investigations into its operations continue.

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