Osegi
Business·2 min read

Malaysia probes Speedmatrix, Megaspeed's unit, over Nvidia AI chips

Malaysia is checking whether AI chips imported by Speedmatrix, Megaspeed's local unit, were shipped onward. Having them in a data centre is legal. Sending them out without a permit is not.

Rows of servers inside a data centre, with a customs inspector checking crates of computer hardware.
Image: TNW | Asia
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Malaysia has opened a check into Speedmatrix, the local arm of Singapore-based cloud company Megaspeed, to find out whether the AI chips it imported were later shipped out of the country. The trade ministry said so on Friday.

The ministry says Speedmatrix brought in servers and AI chips as a data-centre tenant. It is now working with customs to establish whether any of them went onward, and if so, whether that was legal. The probe follows a US senator's allegation that Megaspeed may have been used to get around American controls on advanced semiconductors.

What is the Megaspeed scandal?

Megaspeed is at the centre of the storm that has hit Nvidia over the past fortnight. The US alleges that Alice Huang, a former Megaspeed executive who had a relationship with Jensen Huang, spied for China. Beijing denies it. Huang resigned as Nvidia CEO on Thursday after 33 years, and Nvidia reports earnings on 17 November.

The New York Times has reported that Megaspeed bought more than $4.8bn worth of Nvidia chips over two years. Megaspeed says on its website that it takes US compliance obligations "extremely seriously". It did not answer a request for comment on the ministry's statement. US Commerce agents also suspected Megaspeed of smuggling Nvidia chips into China before their probe was halted and handed to the Justice Department.

Is it illegal to keep AI chips in Malaysia?

No, and that is the crux. Chips sitting in Malaysian data centres and rented out remotely stay legal under current rules. Chinese firms including Alibaba have used Megaspeed this way.

Leaving the country is another matter. Since July 2025, re-exporting, trans-shipping or transiting high-performance US-origin AI chips has needed a trade permit, and giving customs false information about them is an offence.

Prime Minister Anwar Ibrahim said Malaysia would cooperate with any investigation, though it has not yet received requests from Singapore or the US. "Ours is a trading nation. We welcome investment. We want to make sure the rules are being followed," he said, according to state news agency Bernama. He added that there is no sign so far of Megaspeed-linked chips leaving Malaysia.

The ministry is working with authorities in Singapore and the US and is considering tighter controls.

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Tags:megaspeedspeedmatrixnvidiamalaysiaai chipsexport controls

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