Malaysia probes Megaspeed subsidiary over possible AI chip diversion
Malaysia announced today it is investigating a Megaspeed subsidiary over the possible diversion of advanced AI semiconductors to other countries, potentially expanding the scandal involving Nvidia. The subsidiary, Speedmatrix Sdn Bhd, operates data centers in Malaysia and is authorized to import AI chips without a specific license. However, since July 2025, exporting, reexporting, transshipping, or transiting high-performance US AI chips from or through Malaysia requires a license, which the government says was never granted to this subsidiary. Megaspeed, a Singapore-based data center company and Nvidia client, is already under investigation in Singapore. The US is probing suspected chip diversion to China, amid a scandal that led to Nvidia CEO Jensen Huang's resignation on Thursday after 33 years.