Malaysia probes AI chip diversion linked to Nvidia scandal

Malaysia announced Friday it is investigating Megaspeed subsidiary Speedmatrix for allegedly diverting advanced AI chips to other countries, expanding the scandal surrounding US chipmaker Nvidia. The probe follows Nvidia CEO Jensen Huang's resignation amid revelations of his relationship with Alice Huang, a former Megaspeed executive accused by Washington of spying for Beijing. Malaysia's MITI ministry stated that since July, exporting high-performance US AI chips from or through Malaysia requires authorization, with false customs declarations constituting a serious crime. Singapore is also investigating Megaspeed, suspecting servers containing chips were exported to Malaysia but destined elsewhere. Singapore banned Alice Huang from re-entering in February for providing inaccurate information. The scandal has erased nearly half a trillion dollars from Nvidia's market value, raising national security concerns and creating uncertainty in the AI industry.