Singapore and Malaysia funneled $7.5 billion in Nvidia chips to Chinese firms via Megaspeed

Singapore-based cloud provider Megaspeed is suspected of funneling at least $7.5 billion worth of Nvidia chips to Chinese companies, highlighting how firms use Southeast Asia to bypass U.S. export controls. The alleged scheme involves moving restricted AI processors through Singapore and Malaysia. Megaspeed, a neocloud company, allegedly used its Malaysian subsidiary Speedmatrix to receive over 200 shipments of restricted Nvidia technology between June 2024 and June 2025. The chips reportedly powered data centers built by Shanghai Century Litong, a Chinese firm linked to Megaspeed executive Alice Huang's sister, serving clients like Alibaba and Tencent. Singapore is investigating Megaspeed for suspected domestic law breaches, while Nvidia's board launched an independent probe into whether Huang was targeted by foreign intelligence. Both Singapore and Malaysia have cracked down on chip smuggling, and U.S. lawmakers are considering closing loopholes allowing Chinese access to overseas AI processors.