Nvidia's Communication with Commerce Department Preceded Transfer of Chip Probe to Justice Department
Nvidia's General Counsel, Tim Teter, contacted U.S. Commerce Department investigators in August 2025 regarding an investigation into Megaspeed, a Singapore-based data center company suspected of illegally diverting advanced Nvidia AI chips to China. Teter reportedly stated that senior Commerce official Jeff Kessler, who oversees export-control operations and reports directly to Commerce Secretary Howard Lutnick, had given him permission to contact the investigators. This communication raised concerns among Commerce officials about potential compromise of the investigation. Subsequently, the Justice Department requested that the Commerce Department suspend its work and transfer the case, leading to a criminal investigation into Megaspeed. This transfer was considered unusual given that Commerce investigators had spent months building the case and could have pursued administrative actions to restrict Megaspeed's access to U.S. technology. Megaspeed had imported significant amounts of Nvidia AI equipment into...
