NVIDIA-linked Megaspeed says probes found no illegal chip transfers
What's the story
Megaspeed International, a data center operator from Southeast Asia, has strongly denied allegations of illegal chip transfers. The company issued a statement refuting the claims made in a recent Bloomberg article. Megaspeed said that several inspections by US and Malaysian authorities as well as NVIDIA found no evidence of any wrongdoing on its part.
Legal response
Megaspeed may take legal action against Bloomberg
In light of the allegations, Megaspeed is considering legal action against Bloomberg for what it calls misleading reporting.
The company stressed its commitment to complying with export control regulations.
It said, "These thorough investigations have confirmed that there has been no evidence of any violations concerning the illicit transfer of chips or any illegal activities."
Allegations explained
Bloomberg's report on Megaspeed and NVIDIA
Bloomberg had alleged that Megaspeed rented computing capacity to Alibaba and may have given Beijing a backdoor access to advanced NVIDIA chips.
However, the company has vehemently denied these allegations. It reiterated its compliance with export control regulations and said inspections found no evidence of illegal chip transfers or other illicit activities.
Review process
Account of reviews conducted by authorities
Megaspeed revealed that it was reviewed by the US Commerce Department's Bureau of Industry and Security, Malaysia's Ministry of Investment, Trade and Industry, and NVIDIA.
The company stressed that these reviews found no evidence of violations involving illegal chip transfers or other illegal activities.
Legal proceedings
Legal action amid scrutiny on NVIDIA CEO
Megaspeed has not ruled out the possibility of legal action against Bloomberg to protect its reputation.
The company said it takes these allegations seriously and is prepared to hold the publication accountable for what it calls the misleading nature of its article.
This move comes amid increasing scrutiny on NVIDIA CEO Jensen Huang over his alleged relationship with Alice Huang, a former Megaspeed business executive whom US intelligence agencies have reportedly identified as a Chinese spy.