Commerce Department Delays Megaspeed Blacklisting Amid Nvidia Chip Probe
Key Facts
The U.S. Commerce Department has delayed adding Megaspeed to its trade blacklist, according to a Bloomberg headline on November 10 citing the Financial Times. The details available from the report did not include a new date for the decision or an official explanation for the delay. It is therefore not possible to determine the impact of the move on the company's operations or on any potential trade restrictions. The report is connected to a U.S. investigation involving Nvidia chips, as earlier allegations raised questions about the route taken by artificial intelligence equipment. But the delay alone does not show whether the department will take further action or whether the investigation will lead to a different decision.
The case dates back to a letter Senator Tom Cotton sent to the commerce secretary on October 13, 2025, calling for an investigation into Megaspeed. Cotton said U.S. officials had found U.S. chips subject to export controls inside crates at a data center in Malaysia. He also said the company stopped ordering chips from Nvidia after moves by Malaysia and Singapore against chip smuggling, according to the letter. The following day, Singapore police said an investigation into the company was ongoing over suspected violations of local laws. These remain allegations and investigations attributed to their sources; on their own, they do not establish that the company diverted products to a prohibited party.
Nvidia said it had contacted the U.S. government and conducted an internal investigation, adding that it found no reason to believe its products had been diverted to other parties. Megaspeed offers access to GB200 NVL72 and HGX H100 systems, according to Reuters, and describes itself as an Nvidia cloud partner in Asia-Pacific. This business gives the case a direct connection to the advanced computing infrastructure market, but on its own it does not determine the nature of any potential violation. The company's disclosures also showed its assets rose to 3 billion dollars in 2024, from 33 million dollars in 2023, while revenue reached 294 million dollars after being zero. These figures provide background on the company's growth, but do not explain the Commerce Department's decision to delay the listing.
According to Reuters, the company was founded in 2015 as 7Road International before changing its name to Megaspeed International in March 2023. In a development separate from the Commerce Department's decision, the Associated Press reported that Nvidia shares fell 7.97 dollars, or 4.3%, on Monday, wiping about 190 billion dollars off its market value. The available information does not establish that the decline was a response to the delay report or to the investigation involving the company. The agency also cited a shareholder lawsuit seeking to represent buyers of Nvidia shares between October 9 and November 8, and seeking unspecified damages and a jury trial. The timing of the department's next decision remains unspecified in the published information about the delay.