Malaysia says probing Megaspeed subsidiary over possible AI chip diversion

Detailed summary
SpeedMatrix, a Malaysian subsidiary of Singapore-based cloud computing firm Megaspeed, is a tenant at data centres in Malaysia.
SpeedMatrix, a Malaysian subsidiary of Singapore-based cloud computing firm Megaspeed, is a tenant at data centres in Malaysia.
KUALA LUMPUR: Malaysia's trade ministry said on Friday (Nov 13) that it was working with customs to determine whether any chips brought into the country by SpeedMatrix, a local unit of Singapore-based cloud computing firm Megaspeed, were re-exported to other countries.
It came the day after Nvidia boss Jensen Huang resigned over an affair, reportedly with Alice Huang - a suspected Chinese spy and former top executive at Megaspeed.
Megaspeed is under scrutiny for allegedly steering Nvidia AI chips to China despite US export rules designed to slow the development of artificial intelligence technology by Beijing.
In a statement on Friday, Malaysia's Ministry of Investment, Trade and Industry (MITI) said that Speedmatrix is a tenant at data centres in Malaysia and is allowed to bring AI chips into the country without a permit or license.
Currently, bringing AI chips into Malaysia does not require a permit or a 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", said the ministry.
"MITI is therefore working with the Royal Malaysian Customs Department to determine whether any of the chips brought into Malaysia have since been reexported to other countries, and whether such reexports were carried out in accordance with the law," it said.
"Malaysia will carry out its own checks independently, in accordance with Malaysian law and based on the evidence available," it added.
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