MEGASPEED -BUSINESS- MEGASPACE : A.I.'S CHIPS PRECIS

Where do Nvidia's A.I. chips end up? U.S. officials are worried a Singaporean company is sending them to China.

MEGASPEED illustrates the challenges facing U.S. government officials trying to keep China from accessing powerful A.I. chips.

After splitting off from a Chinese gaming company in 2023, Megaspeed set up a subsidiary in Malaysia that quickly snapped up nearly $2 billion worth of Nvidia's most advanced products.

Most of these chips came from the U.S. branch of a Chinese company that has already been sanctioned for providing technology to the Chinese military according to records obtained through ImportGenius, a trade data platform.

Megaspeed has funneled those chips to data centers in Malaysia and Indonesia that appear to remotely serve customers in China. That is not necessarily illegal, but it can be found unlawful if it is done on behalf of a Chinese company.

U.S. officials have also been scrutinizing whether Megaspeed diverted some of those Chips on to China in violation of U.S. law, two. people familiar with the company said.

This Nvidia's A.I. Chips Precis continues.

The World Students Society thanks Ana Swanson, Tripp Mickle, Paul Mozur, and Mara Hvistendahl.