Nvidia’s chip-count assurance faces a reported inventory gap in Megaspeed case

Nvidia says its checks found chips where they belonged, but a reported inventory gap challenges that assurance in the Megaspeed export-control case. The Washington Post reported on November 15 that U.S. and Singaporean authorities suspected the Nvidia customer of breaching export controls, amid concerns about restricted AI chips potentially reaching Chinese entities.

The National News Desk reported that trade records and filings highlighted by other outlets showed tens of thousands of chips that did not match Nvidia’s stated counts. It described the gap as worth billions of dollars, placing the dispute over chip accounting alongside the concerns about access to restricted hardware.

An assurance meets a disputed count

Nvidia said its checks confirmed that “everything was where it should be,” according to the outlet. Gordon Chang, a China commentator and senior fellow at the Gatestone Institute, challenged the company’s accounting in an interview with The National News Desk, citing Bloomberg reporting about its sales to Megaspeed.

Chang alleged that Nvidia had undercounted chips sold to the customer. He also criticized its subsequent correction, saying the company “did so in a way that confused issues, not clarified them.” His criticism focused on both the original count and how Nvidia explained the change.

The suspected breaches and disputed counts do not establish that Megaspeed diverted restricted chips to China, or identify the ultimate users of the disputed hardware.

I think that essentially we’re going to see tightening of U.S. export controls, and there’s probably going to be legislation, not just an executive order.

Gordon Chang, speaking to The National News Desk

Chang also predicted unexpected developments, including possible criminal indictments. Tighter controls, legislation and charges remain his forecasts: the interview announced no new export rules or indictments.