U.S. Commerce Dept. Inquiry Into Megaspeed Was Halted After Nvidia Name-Dropped Trump Appointee

Ana Swanson and Devlin Barrett, reporting yesterday for The New York Times (gift link):

Investigators at the Commerce Department were deep into a monthslong investigation of a Singaporean company that they suspected of smuggling Nvidia’s artificial intelligence chips into China when their work came to a sudden halt late last year. The investigation centered on Megaspeed, a data center company led by an executive who U.S. officials now believe to be a Chinese spy who had a relationship with Nvidia’s chief executive, Jensen Huang.

But the case was abruptly transferred to the Justice Department last year. The shift came after Commerce Department investigators working on the case received an email from Nvidia’s general counsel seeking information about the inquiry into Megaspeed.

It is not necessarily unusual for Commerce Department agents working on a case to speak with a company’s representatives about issues involving their firm. But what was unusual was the content of the message. Tim Teter, Nvidia’s general counsel, said that Jeff Kessler, a top official at the department, had given Nvidia permission to reach out about the case.

The agents were alarmed that Nvidia had invoked the name of Mr. Kessler, their superior, who was nominated to his role by President Trump. Some viewed Mr. Kessler’s interaction with Nvidia as violating government procedure and potentially tainting the case, according to current and former government officials and others familiar with the incident.

“Nice job you have there. Be a shame if something happened to it.”

If this is as abjectly corrupt as it sounds, it seems indefensible — and Congressional oversight investigations are now inevitable with both the House and Senate in Democratic hands. This isn’t just pocket-stuffing corruption — it’s a national security issue.

★ Tuesday, 10 November 2026