Nvidia's AI Chip Customer Megaspeed Faces Scrutiny Over Ties to China

Megaspeed, a company that has been one of Nvidia's biggest foreign customers in recent years, has sparked concerns over its ties to China after it was found to have several vacant offices across Asia.

The company, which was previously involved in the gaming industry, has purchased nearly $5 billion worth of AI chips and advanced hardware from Nvidia over the past three years. However, despite its significant business dealings with the US-based technology firm, Megaspeed's corporate headquarters in Singapore appears to be largely empty.

Reports have also revealed that the company's Australian subsidiary listed a newspaper vendor as its director, while one of its Malaysia offices is situated in a dilapidated storefront outside Kuala Lumpur. Another office in Malaysia was found to be located within a shopping mall.

The discovery has raised questions about Megaspeed's operations and whether it has been using its access to Nvidia's restricted AI computer chips for illicit purposes.

The investigation into Megaspeed's ties to Nvidia and China has taken an unexpected turn, with President Trump revealing that the FBI is also looking into personal relationships between Nvidia's CEO Jensen Huang and Alice Huang.

Jensen Huang had previously apologized for his affair with Alice Huang in a statement to Nvidia employees, but the matter has now escalated into a full-blown scandal. An independent investigation has been launched by the company, and an Nvidia shareholder has filed a class-action lawsuit alleging that Huang concealed the relationship and misled shareholders about national security concerns.

Experts are sounding alarm bells over the potential implications of Nvidia's advanced AI chips falling into the wrong hands. China expert Jacqueline Deal warned that if allegations are true, it could have serious consequences for global security.

The US Commerce Department has jurisdiction over export controls, which may have been bypassed in this case, potentially giving the Chinese military access to highly advanced technology.

Megaspeed International's rapid expansion and affiliation with Nvidia have raised eyebrows in recent years.

According to its LinkedIn profile, Megaspeed is a premier business partner of Nvidia, strategically positioned in the Asia Pacific region. The company claims to employ between 201 and 500 people, but just three years ago it listed only two to 10 employees on the same platform. This significant increase in workforce suggests that Megaspeed has been growing rapidly.

Megaspeed's LinkedIn profile also highlights its close ties with Nvidia, which may have contributed to its rapid growth. However, the company's failure to address these questions directly has sparked concerns about its involvement in alleged illicit chip transfers.

The company has issued a statement on its website and social media platforms, denying any wrongdoing. According to the statement, Megaspeed has undergone multiple inspections by key institutions, including the US Commerce Department's Bureau of Industry and Security and Nvidia itself. These investigations have allegedly found no evidence of illegal activities or chip transfers.

Megaspeed, a company shrouded in mystery, has been at the center of attention due to its vacant offices and alleged ties to Nvidia and China.

The company's history began in 2015 under the name 7Road International, a subsidiary of a Chinese video game developer based in Shenzhen. Corporate filings reveal this connection.

A significant change occurred in March 2023 when Huang Le Limited, a shell company registered in the British Virgin Islands, acquired 7Road International.

Huang Le is also the Chinese name for Alice Huang, who became Megaspeed's managing director after the acquisition and renaming of 7Road International to Megaspeed International.

The company launched a subsidiary called Speedmatrix at this time as well.

Megaspeed's office location has been listed on the seventh floor of the Ocean Financial Centre in Singapore, a prominent glass tower in the city-state's central business district.

The vacant offices of Megaspeed in Singapore have sparked concerns about the company's ties to Nvidia and China.

Visits by journalists from The Straits Times and The New York Times last year revealed a nearly empty office space on the seventh floor of the Ocean Financial Centre. The lack of staff working at the site has raised questions about the legitimacy of Megaspeed's presence in Singapore.

Megaspeed also maintains an Australian subsidiary, located on the 10th floor of a prominent commercial and retail tower in Sydney's central business district. This office is shared with 40 other businesses, with rent reportedly as low as $17 per day, according to Australia's ABC News.