US Delays Blacklisting Megaspeed Amid China AI Chip Smuggling Concerns

The U.S. Commerce Department has delayed adding Singapore-based data center operator Megaspeed to a trade blacklist, despite multiple federal agencies urging its designation over alleged AI chip smuggling to China, raising questions about the role of Commerce Secretary Howard Lutnick and other officials. The State, Energy, Treasury, and Defense Departments pushed to place Megaspeed on the Entity List for national security risks tied to China, but the Commerce Department, which oversees the list, sought to postpone new additions over the past two months, citing a need for more information on some companies. Separately, Nvidia's general counsel Tim Teter contacted Commerce investigators in August about Megaspeed executive Huang Le, claiming approval from Deputy Commerce Secretary Jeffrey Kessler, prompting concerns about improper high-level involvement; the case was later transferred to the Justice Department for criminal investigation. Huang Le, linked to Nvidia CEO Jensen Huang in an alleged affair, is accused of being a Chinese spy and smuggling advanced AI chips. Three Republican House committee chairs have requested Jensen Huang attend a closed briefing by November 18, with a subpoena threatened if he does not respond.