Malaysia probes SpeedMatrix over possible AI chip diversion to China
Malaysia's trade ministry is investigating SpeedMatrix, a Malaysian subsidiary of Singapore-based cloud firm Megaspeed, over whether AI chips brought into the country were re-exported in breach of export controls. The probe follows the resignation of Nvidia CEO Jensen Huang amid allegations that Meg
Malaysia's Ministry of Investment, Trade and Industry (MITI) said on Friday (13 Nov) that it was working with the Royal Malaysian Customs Department to determine whether AI chips brought into the country by SpeedMatrix, a local unit of Singapore-based cloud computing firm Megaspeed, were re-exported to other countries. The announcement came a day after Nvidia chief executive Jensen Huang resigned over an affair with Alice Huang, a former top executive at Megaspeed suspected of being a Chinese spy.
SpeedMatrix is a tenant at data centres in Malaysia and is currently allowed to bring AI chips into the country without a permit or licence. However, since July last year, anyone seeking to export, re-export, transship or transit high-performance US AI chips from or through Malaysia must obtain a permit. Giving false information to customs authorities about such items is a serious offence, the ministry said.
MITI stated that it has never cleared Megaspeed or its Malaysian affiliate SpeedMatrix, and that any verification visits carried out at data centre facilities were part of regular monitoring and should not be taken to mean a company has been cleared. The ministry is also working closely with authorities in Singapore and the United States and is considering further measures to strengthen controls where necessary.
While Malaysia does not enforce unilateral export controls imposed by other countries, all companies operating in Malaysia are expected to take such controls into account in their international business, MITI said. The ministry called on companies not to misrepresent their dealings with government agencies and warned that stern action will be taken against those who break Malaysian law.
Megaspeed is also under investigation in Singapore. Singapore's Ministry of Home Affairs said on Thursday that physical servers had been purchased by companies under investigation and exported through Singapore to Malaysia without entering the Singapore market. Police are investigating whether the servers were subsequently routed from Malaysia to another destination, contrary to declarations made by the companies in Singapore.
