The US Department of Commerce has suspended its investigation into Megaspeed following intervention by Nvidia

The US Department of Commerce has officially suspended its investigation into Megaspeed, a company suspected of illegally supplying Nvidia chips to China. The process was halted after the chipmaker's general counsel contacted investigators, citing authorization from a high-ranking official.

The intervention by company representatives has raised serious questions about potential improper influence on government agencies. As a result of the ensuing scandal, the case has been referred to the US Department of Justice for further proceedings. Megaspeed was previously accused of using shell company schemes to bypass export restrictions in place against the PRC.

The situation highlights the growing tension between government oversight of high-performance GPU supply chains and the interests of major market players. The referral to the DOJ marks a shift in the investigation from an administrative to a criminal level, which could lead to tighter controls on Nvidia's distributors and partners in the coming months.