Treasury Secretary Scott Bessent is demanding explanations regarding whether shell companies were used to route banned processors to Chinese entities through Southeast Asia. The Department of Justice is actively conducting a criminal probe into the matter, focusing on Singapore-based data center operator Megaspeed. Although Nvidia previously claimed it refuted these diversion allegations last year, federal officials are scrutinizing the company's compliance culture and past sales authorisations.
Key points
Former chief executive Jensen Huang and corporate leaders have agreed to testify before t…: Former chief executive Jensen Huang and corporate leaders have agreed to testify before three separate House committees.
Lawmakers intend to investigate potential ties to an alleged Chinese spy who previously w…: Lawmakers intend to investigate potential ties to an alleged Chinese spy who previously worked for Megaspeed.
Government authorizations from late 2025 strictly capped legal technology shipments to Ch…: Government authorizations from late 2025 strictly capped legal technology shipments to Chinese buyers at the H200 chip tier.
Sources checked by our analysis pipeline: 1
Nvidia faces fresh scrutiny over claims its most advanced AI chips reached China via Southeast Asia, with a Justice Department criminal probe under way.
WASHINGTON: US Treasury Secretary Scott Bessent called on Nvidia Sunday (Nov 15) to explain whether it knowingly allowed its most advanced AI chips to reach China, saying this was more important than ex-CEO Jensen Huang's affair with an alleged spy for Beijing.
Speaking on "Fox News Sunday Morning Futures" three days after Huang resigned, Bessent said he wants to know if Nvidia used shell companies to dodge US restrictions and sell its most powerful chips to China.
The United States forbids sales to China of the most cutting-edge AI chips, hoping to stay ahead of the Chinese in the race to dominate artificial intelligence.
In late 2025, President Donald Trump did authorize sales of Nvidia chips called H200s to the Chinese -- but not the most advanced chips used to run AI models reshaping modern society.
"Nothing above the H200s can be sold to the Chinese," Bessent said.
Internal investigations are underway alongside federal agencies and external specialists after the major Australian retailer identified unauthorized activity within its systems. Daily operations, in-store trading, and digital shopping platforms remain completely uninterrupted while defenses are reinforced. The episode comes amid an intensifying wave of cyber threats that has driven national policymakers to pursue stricter, mandatory incident reporting regulations.
Third parties exploited platform-side vulnerabilities to re-register historic short URLs found in legacy social media posts, steering web traffic away from legitimate corporate and political records. The unauthorized modifications redirected visitors to diverse third-party destinations, including cryptocurrency domains, Wikipedia pages, and video platforms. To mitigate the exposure, the link-shortening service deactivated the altered URLs and applied suspension notices.
Hospitality operations are seeing increased automation as advanced machinery takes over routine housekeeping duties previously managed by human staff. The technology showcases how rapid automated systems can streamline time-consuming service industry procedures. Initial disclosures surrounding the development, however, leave many operational and technical questions unanswered.