Commerce Halted Megaspeed Chip Probe After Nvidia Outreach, NYT Reports

The U.S. Commerce Department paused its probe into Megaspeed, an Nvidia customer, after outreach from Nvidia, even as the Justice Department pursues a criminal inquiry into the company, according to a New York Times report. Commerce maintains it handled the case by the book, while the report raises questions about Nvidia's influence over scrutiny of its own customers. The case centers on Megaspeed's role as a conduit for Nvidia chips, a sensitive issue as U.S. export controls restrict advanced AI processors. The overlap of a criminal DOJ inquiry and a stalled Commerce review could complicate enforcement at a time when chip supply routes are under close watch. What to watch next is whether Commerce resumes its review, how the DOJ case develops, and whether the scrutiny affects Megaspeed's access to Nvidia hardware.