Reportedly, Commerce Department halted Nvidia chip-smuggling probe after Nvidia contact

The short version

• Slashdot reports that Commerce investigators were probing Megaspeed, a Singaporean firm suspected of smuggling Nvidia chips into China.[Slashdot]
• The case was abruptly transferred to the Justice Department last year after an email from Nvidia's general counsel, Tim Teter.[Slashdot]
• Teter says a top Commerce official, Jeff Kessler, authorized Nvidia's outreach, which some officials viewed as improper and potentially tainting the case.[Slashdot]
• The Justice Department is reportedly running a criminal inquiry into Megaspeed, according to people familiar with the matter.[Slashdot]

Key facts

• Commerce Department investigators were examining Megaspeed, a Singaporean company suspected of smuggling Nvidia AI chips into China.[Slashdot]
• The investigation was abruptly transferred to the Justice Department last year after Commerce investigators received an email from Nvidia general counsel Tim Teter.[Slashdot]
• Teter said top Commerce official Jeff Kessler had given Nvidia permission to reach out about the case.[Slashdot]
• Some current and former officials viewed Kessler's interaction with Nvidia as violating government procedure and potentially tainting the case, according to officials and others familiar with the incident.[Slashdot]
• U.S. officials believe Megaspeed's executive is a Chinese spy who had a relationship with Nvidia CEO Jensen Huang.[Slashdot]
• The Justice Department is conducting a criminal inquiry into Megaspeed, according to people familiar with the matter.[Slashdot]

Sources

Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.

• Commerce Dept. Chip Inquiry Was Halted After Nvidia InterventionSlashdot