Senator Cotton Calls for Investigation into Alleged Nvidia Chip Diversion

U.S. Senator Tom Cotton urges an investigation into Singapore-based Megaspeed for allegedly diverting Nvidia AI chips amidst rising tension over U.S. export controls. The company reportedly bypassed bans to supply high-end chips to Southeast Asia, benefiting China. Investigation continues as export restrictions tighten.

U.S. Senator Tom Cotton has urged the Commerce Department to probe Singapore's Megaspeed over alleged Nvidia AI chip diversions, according to a letter obtained by Reuters. The purported actions involve rerouting advanced chips to Malaysia and Indonesia, ultimately serving China.

Reports from sources like The New York Times highlight Megaspeed's controversial operations. The Singapore Police Force confirmed ongoing investigations into potential legal breaches by the company, which remains silent on requests for comments.

Cotton accused Megaspeed of undermining U.S. policies amidst increasing export control measures. His letter to Commerce Secretary Howard Lutnick insists on tighter enforcement, aligning with recent high-stakes tariffs and regulatory actions led by President Trump.

(With inputs from agencies.)