Megaspeed International, a Singapore-based tech startup, has become a central figure in an alleged spy scandal involving Nvidia, the $4 trillion company behind the world’s most advanced chips. The company, which rapidly transformed from a Chinese gaming subsidiary into a major buyer of US semiconductors, is suspected of exploiting a loophole in US export controls to supply Nvidia chips to unauthorized Chinese buyers. Nvidia CEO Jensen Huang resigned after admitting to an affair with Alice Huang, a Chinese executive linked to Megaspeed, whom US officials believe is a Chinese intelligence asset.
US officials and lawmakers are concerned that Megaspeed may be part of a shadow industry circumventing export controls, which were implemented in 2022 to restrict sales of advanced semiconductors to China. The company has purchased over $4 billion in chips and equipment from Nvidia, raising suspicions about its compliance with US laws. Megaspeed’s business model, which involves building data centers and renting out computing services, is seen as a potential workaround for Chinese companies seeking access to advanced US technology.
Singapore has also initiated investigations into Megaspeed and its controllers, including Alice Huang, for potential false declarations relating to server purchases and their final destinations. Despite these investigations, Megaspeed has not been labeled a national security threat or subject to limitations on chip purchases. The scandal has highlighted the challenges the US faces in preventing adversaries from securing high-stakes technology, with experts estimating that hundreds of thousands of advanced US semiconductors were sent to China in violation of export controls last year.