Senator Cotton Urges Probe into Megaspeed's Nvidia Chip Diversions

U.S. Senator Tom Cotton has called for a Commerce Department investigation into Singapore-based Megaspeed, accused of diverting Nvidia chips intended for AI use. Allegations point to the company's illegal supply chain funneling chips to Malaysia and Indonesia. The case underscores export control challenges amid U.S.-China trade tensions.

In a significant development, U.S. Republican Senator Tom Cotton has urged the Commerce Department to launch an investigation into Singapore-based company Megaspeed. This call follows allegations that the cloud computing firm has been illegally diverting Nvidia chips designed for artificial intelligence applications.

The inquiry request is based on a New York Times report, which highlighted Megaspeed's involvement in funneling Nvidia chips to countries like Malaysia and Indonesia, potentially servicing Chinese clients remotely. Nvidia, a major player in the AI hardware market, stated that its own investigation found no evidence of diversion, but remains in cooperation with U.S. governmental bodies.

Amidst escalating trade tensions, the U.S. has imposed strict export controls on high-end AI chips to prevent access by Chinese entities. Senator Cotton emphasized the strategic importance of maintaining these restrictions, aligning with President Trump's tightened measures against China's tech imports. The unfolding events continue to challenge export regulations and international tech supply chains.

(With inputs from agencies.)