Malaysia's Investment, Trade and Industry Ministry launched an inquiry on Friday into the movement of servers and artificial intelligence chips that Speedmatrix, the Malaysian arm of cloud services provider Megaspeed, had imported as a data-centre operator, according to Reuters reporting.
The investigation marks the latest development in a widening controversy that has already claimed the position of Jensen Huang at Nvidia. A US senator has alleged that Megaspeed may have served as a vehicle to circumvent American export controls on cutting-edge semiconductor technology.
Malaysian officials stated that Speedmatrix brought in the hardware in its capacity as a data-centre operator, and that they are collaborating with customs authorities to determine whether those components were subsequently shipped elsewhere and, if they were, whether such transactions complied with applicable regulations.
The Megaspeed situation emerged as the focal point of a scandal involving Nvidia that unfolded over recent weeks. According to US authorities, Alice Huang, a former executive at Megaspeed who had a personal connection to Jensen Huang, engaged in espionage activities on behalf of China—an allegation that Beijing has rejected.
The New York Times disclosed that Megaspeed purchased more than $4.8bn in Nvidia chips over a two-year span. On its website, the company states that it treats US compliance requirements "extremely seriously", though it declined to respond to Reuters' inquiry regarding the Malaysian ministry's announcement.
Malaysia has implemented its own regulatory framework independent of US policy. Beginning in July 2025, the re-export, trans-shipment, or transit of high-performance AI chips manufactured in the United States requires a trade authorization, and providing customs officials with false information about such goods constitutes a violation.
Officials indicated they are coordinating closely with counterparts in Singapore and the United States and are examining the possibility of strengthening restrictions further. The ministry emphasized that "all companies operating in Malaysia are expected to take such controls into account" in their international dealings.
Prime Minister Anwar Ibrahim stated that Malaysia would participate in any investigations, though the country has not yet received formal requests from Singapore or the United States.
Ours is a trading nation. We welcome investment. We want to make sure the rules are being followed
Prime Minister Anwar Ibrahim, per state news agency Bernama
Ibrahim also noted that there is currently no evidence suggesting that chips connected to Megaspeed have departed Malaysia.
This distinction lies at the heart of the matter. Semiconductors housed in Malaysian data centres and accessed remotely by users, as Chinese enterprises including Alibaba have arranged through Megaspeed, remain permissible under existing regulations.
The situation changes if chips cross Malaysian borders without authorization. US Commerce Department investigators had suspected Megaspeed of illegally transporting Nvidia semiconductors into China, though their investigation was subsequently transferred to the Justice Department.
Huang departed from his position on Thursday following 33 years with the company; Nvidia will announce its financial results on 17 November. The question of Megaspeed's chip destinations has now prompted customs officials across three continents to pursue answers.
Source: The Next Web
