Bloomberg reported a 50,000-chip discrepancy and Nvidia counsel's contact with a US official. The revelations intensified scrutiny of a stalled probe into suspected export-control breaches.Megaspeed imported $787 million worth of Nvidia chips amid data discrepancies.

Nvidia's dealings with Singapore-based Megaspeed International have come under fresh scrutiny after Bloomberg reported a discrepancy of 50,000 AI chips in the inventory figures the chipmaker shared with US authorities, while also revealing that a senior Nvidia executive intervened in a government investigation into suspected chip smuggling by the company.According to a Bloomberg report published on November 9, Nvidia's general counsel, Tim Teter, contacted a senior US Commerce Department official in 2025 to ask about the investigation into Megaspeed and the detention of its executive, Alice Huang, by Singapore authorities.The report raises questions about Nvidia's engagement with US officials as investigators examined whether advanced AI chips supplied to Megaspeed had been diverted in violation of US export restrictions.The 50,000-chip discrepancy is among the most significant revelations. Bloomberg said trade records it analysed showed that Nvidia's inventory figures, shared with the US government, undercounted the number of chips sold to Megaspeed through hardware partners by 50,000 units.

The hardware was worth billions of dollars. Nvidia subsequently told Bloomberg that it had checked additional Megaspeed warehouses containing the missing hardware.

However, the company did not disclose exactly how many chips it found or provide further details.NVIDIA GENERAL COUNSEL CONTACTED US OFFICIALThe Bloomberg report said Teter called Jeffrey Kessler, the US Commerce Department's Under Secretary who oversees chip export restrictions, in late summer 2025. Teter wanted to know whether the department's Bureau of Industry and Security (BIS) was involved in Singapore's detention of Alice Huang, a Megaspeed executive.

Singapore police had questioned her and restricted her from leaving the country.BIS was not involved in that action, according to people familiar with the matter cited by Bloomberg.In the weeks after the call, BIS staff faced restrictions in their handling of the Megaspeed investigation, the report said. They were told not to mention Megaspeed or its Malaysian subsidiary, Speedmatrix, in external communications.

Requests involving Nvidia also had to be routed through Kessler or receive his approval before outreach.Teter separately contacted BIS employees and sought a meeting with one of them. The employee declined, and the exchange was forwarded to Kessler.

Kessler subsequently told staff to continue handling the case by the book.The report said it was unclear whether Teter made any specific requests related to the investigation during his initial call.US INVESTIGATION REPORTEDLY STALLEDThe investigation into Megaspeed also faced a pause in late 2025.According to Bloomberg's sources, the US Justice Department, which was working with BIS on the case, asked the agency to suspend its efforts. The report said BIS had made no progress since then, despite having enough evidence to move forward.The developments have raised questions about Nvidia's ability to influence US investigations into suspected breaches of restrictions on exports of advanced AI chips.A BIS spokesperson told Bloomberg that the agency conducts enforcement strictly by the book and enforces restrictions aggressively, including in cases involving chip smuggling.

The spokesperson added that enforcement was at an all-time high.MEGASPEED SHIPPED $787 MILLION WORTH OF NVIDIA CHIPSBloomberg also reported that Malaysian trade records showed Megaspeed imported at least 17,544 Nvidia GB300 processors in November 2025, worth around $787 million.The report identified discrepancies in Megaspeed's data centre footprint as well. Of the eight data centre operators Nvidia told US officials it had visited, two said they did not have Megaspeed's hardware.After Bloomberg raised questions about the inventory gap in December 2025, Nvidia said it had checked additional warehouses where the missing hardware was located.

It did not provide a detailed breakdown of the additional checks.The report also said Megaspeed's largest data centre landlord subsequently dropped the company as a tenant.NVIDIA DEFENDS ITS ENGAGEMENT WITH US GOVERNMENTNvidia defended its interactions with US government officials, saying it consults them to answer questions, share information gathered from the field and seek guidance.The company said it works to resolve allegations of chip diversion promptly and help the government and its partners stop potential smugglers while continuing to serve lawful customers."Unresolved questions about lawful business undercut longstanding US policy and hurt American economic and national security," an Nvidia spokesperson told Bloomberg.Megaspeed has categorically denied the chip diversion allegations. The company said Singapore's investigation into activities related to alleged chip diversion concluded earlier in 2026 without adverse action against it.

It also said its outreach to the US government about the probe had gone unanswered.JENSEN HUANG'S PERSONAL CONTROVERSY ADDS TO SCRUTINYThe report comes amid a separate controversy involving Nvidia CEO Jensen Huang and Alice Huang.Jensen Huang admitted to having an affair with Alice after previously giving an inaccurate account of their relationship. Nvidia's board is investigating the matter.However, Nvidia told Bloomberg that Teter was unaware of the affair when he contacted Kessler about Alice's detention in Singapore in 2025.Bloomberg also reported that Teter told a White House official around three months before the article that Alice was not as important within Megaspeed as she claimed to be.

He reportedly said Nvidia had stopped doing business with the company because of the negative publicity surrounding her.However, Bloomberg noted that Megaspeed continues to be listed as an official Nvidia Cloud Partner, a designation the chipmaker generally withdraws when it no longer does business with a company.- Ends