Commerce Megaspeed Probe Moved to DOJ After Nvidia Outreach, Times Reports
The New York Times reports that a Commerce export-control case was handed to the Justice Department after Nvidia's general counsel emailed investigators; the reports do not show the outreach caused the move.
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The New York Times reported on Monday, November 9, that a Commerce Department investigation of Megaspeed, a Singapore-based data-center company, was transferred to the Justice Department after Nvidia general counsel Tim Teter emailed the investigators in August 2025. Teter wrote that Under Secretary Jeff Kessler had given him permission to reach out, according to the report. The Justice Department is now conducting a criminal inquiry into Megaspeed, people familiar with the matter told the Times.
DailyMech could not read the Times article or Reuters' write-up and relies on outlets relaying the Times, which are not independent confirmation. The reports describe a sequence, not a cause: they do not establish that the outreach caused the transfer or won favorable treatment.
This follows DailyMech's November 6 report on the Times' account, relayed by The Verge, that China's Ministry of State Security recruited Megaspeed executive Alice Huang to gather intelligence on Nvidia CEO Jensen Huang. Those allegations remain unproven; the two Huangs are unrelated. On November 8, Nvidia's board opened an independent investigation, saying it has no reason to believe secrets were compromised; that is its position, not a finding.
At a glance
| Claim | Source | Status |
|---|---|---|
| Teter emailed investigators, Aug 2025 | Times, citing people familiar | Single-origin report |
| Kessler permitted the contact | Teter's email, as reported | Not established |
| Meeting request declined | Times relays | Reported |
| Kessler said proceed "by the book" | Commerce official, via Times | Reported; no halt order described |
| DOJ asked Commerce to pause; case moved | People familiar, via Times | Reported; date not established |
| DOJ criminal inquiry into Megaspeed | People familiar, via Times | Not confirmed by DOJ |
What the Times reported inside Commerce
According to the relays, Teter's email sought information about the Bureau of Industry and Security's Megaspeed investigation. Agents were alarmed that Nvidia had invoked Kessler, their superior, who oversees export controls and reports to Commerce Secretary Howard Lutnick. Some officials saw a possible procedural breach that risked the case.
Investigators declined Nvidia's request for a meeting. After the email chain reached him, Kessler told staff to keep handling the case strictly by the book and did not direct them to share information with Nvidia or weigh in on investigative decisions, a Commerce official told the Times.
Internal discussions raised concern that the department's dealings with Nvidia could compromise the case, and officials notified partner agencies. The Justice Department asked Commerce to pause, Commerce complied, and the case moved. When that happened is not established in the sources read.
U.S. officials began examining Megaspeed in 2024 after it imported billions of dollars of Nvidia AI equipment into Malaysia for data centers serving Chinese clients, which is legal; they suspected some chips were illegally routed to China. The Times also reported that Commerce has added no company to its Entity List in more than a year, the longest such stretch in 18 years.
What officials and companies said
As relayed from the Times, a Justice Department spokeswoman said the department does not comment on continuing investigations. A Commerce spokesman said the department has been aggressively enforcing its rules and handled this and other actions strictly by the book. Kessler did not respond to requests for comment.
Nvidia spokesman John Rizzo said the company consults officials to answer questions, share information gathered in the field and request guidance, and works to help stop would-be smugglers while serving lawful customers.
A Megaspeed representative said the company is conducting an internal investigation into chip-diversion allegations and that its repeated offers to cooperate with the U.S. government went unanswered. An undated homepage statement, which NDTV describes as a reply to a Bloomberg article, says inspections by Commerce, Malaysia's trade ministry and Nvidia found no evidence of illicit chip transfers; we do not treat it as a response to the Times.
What this does and does not establish
Teter's reference to Kessler is Teter's claim as reported; whether Kessler authorized the contact, or what he discussed with Nvidia, is not established. The reports do not say Kessler ordered the inquiry stopped. Investing.com notes the case was not dropped, but the Justice Department has not confirmed its reported inquiry.
Megaspeed is suspected of diversion and denies wrongdoing. The sources read report no findings or charges against Nvidia, Teter, Kessler or Megaspeed, and no Commerce, Justice or Nvidia document on this episode was found.
What to watch
Any Justice Department filing or statement; congressional questions to Commerce or Kessler; whether the House briefing requested for November 18 happens (a reply was requested by November 11); Nvidia board updates; and Entity List decisions.
How we reported this
On November 9, the Times article timed out and Reuters' version showed only its headline. We read relays from Investing.com, NDTV Profit (summary labeled AI-generated) and Clash Report, plus Techmeme, NDTV, Megaspeed's homepage and Nvidia's board statement. Unauthorized full-text copies of the Times article were excluded. DailyMech contacted no one.
Published and fact-checked November 9, 2026.
Sources
- The New York Times, "Commerce Dept. Chip Inquiry Was Halted After Nvidia Intervention," November 9, 2026: https://www.nytimes.com/2026/11/09/business/economy/nvidia-megaspeed-investigation-huang.html (original; body not read — timed out)
- Reuters via TradingView, "US Commerce Department investigation into Megaspeed was halted after Nvidia intervention- New York Times," November 9, 2026: https://www.tradingview.com/news/reuters.com,2026:newsml_L3N46Q1C8:0-us-commerce-department-investigation-into-megaspeed-was-halted-after-nvidia-intervention-new-york-times/ (headline only; body not read)
- Investing.com, Louis Juricic, "Nvidia intervention preceded transfer of chip probe to Justice Department," November 9, 2026: https://www.investing.com/news/stock-market-news/nvidia-intervention-preceded-transfer-of-chip-probe-to-justice-department-5012839 (fully readable; relays the Times; no time zone shown)
- NDTV Profit, "US Commerce Probe Into Megaspeed Halted After Nvidia Intervened: Report," November 9, 2026: https://www.ndtvprofit.com/markets/us-commerce-probe-into-megaspeed-halted-after-nvidia-intervened-report-12305031 (fully readable; relays the Times; summary labeled AI-generated)
- Clash Report, Kamer Kurunç, "Nvidia Email Shifts Commerce Megaspeed Chip Probe to Justice," November 9, 2026: https://clashreport.com/world/articles/nvidia-megaspeed-commerce-probe-rkz9qmijh4s (fully readable; relays the Times, including agency and company responses)
- Techmeme roundup, November 9, 2026: https://www.techmeme.com/261109/p32 (headline summary of the Times only)
- NDTV, "Megaspeed Reacts To Illegal Ops Allegations Amid Ex-Executive's Nvidia Links": https://www.ndtv.com/world-news/megaspeed-reacts-to-illegal-ops-allegations-amid-ex-executives-nvidia-links-12302322 (fully readable)
- Megaspeed homepage: https://megaspeed.ai/ (fully readable; compliance statement is undated)
- Nvidia, "Statement From NVIDIA Board of Directors," November 8, 2026: https://nvidianews.nvidia.com/news/statement-from-nvidia-board-of-directors (fully readable)
DailyMech used AI tools to help research and draft this article; it was fact-checked by our editors.