Malaysia says probing Megaspeed subsidiary over possible AI chip diversion

Malaysia is checking whether AI chips imported by SpeedMatrix, a local subsidiary of Singapore-based cloud computing firm Megaspeed, were later re-exported in breach of Malaysian law. The inquiry comes amid allegations that Megaspeed helped divert Nvidia chips to China, raising concerns about export controls and the security implications of advanced AI technology.

SpeedMatrix may bring AI chips into Malaysia without a permit, but since July last year, exports, re-exports, transshipments or transit of high-performance US AI chips to or through Malaysia require one. Malaysia’s trade ministry says it is working with customs and authorities in Singapore and the United States, and stresses that routine visits did not amount to clearing either company. Singapore is separately investigating whether servers bought by companies under investigation were routed through Malaysia to another destination; the Nvidia scandal has erased almost US$500 billion from the company’s market value.