Sen. Michael Bennet (D-Colo.) is demanding answers from top Trump administration officials about the government's investigation into Megaspeed, a Singapore-based cloud computing and data center firm, after reports emerged that the Commerce Department shelved its probe last year. In a letter sent Tuesday to the departments of Justice, Commerce, State, and the Office of the Director of National Intelligence, Bennet called the inquiries "crucial and time-sensitive" and requested a status update, according to Semafor, which first obtained the letter.
The scrutiny of Megaspeed intensified this week after Nvidia CEO Jensen Huang appeared to acknowledge an extramarital affair with Megaspeed executive Alice Huang, who is suspected of being recruited by China's Ministry of State Security. The New York Times reported that Commerce abruptly halted its investigation into Megaspeed and handed the matter to the Justice Department. The agency had been examining whether the firm was smuggling Nvidia's AI chips into China in violation of U.S. export controls.
According to the Times, Commerce stopped its probe after receiving an email from Nvidia's general counsel, Tim Teter, regarding the investigation. Teter said Jeff Kessler, the under secretary of Commerce for industry and security, had given him permission to reach out on the case. Concerned about Kessler's potential communications with Nvidia, Commerce staff transferred the case to the DOJ to "avoid any potential compromise of the government's investigation of Megaspeed," the Times reported. NBC News later reported that the DOJ asked Commerce to cease its portion of the probe following Teter's email. Neither agency confirmed these details, and the DOJ declined to comment.
The day before the Times report, Nvidia's board announced it was launching an internal investigation after Huang admitted to being "unfaithful" to his wife. The board said it had no reason to believe national security or company secrets were compromised, but the inquiry is expected to focus on U.S. national and economic security. The controversy has also drawn attention to Nvidia's export control challenges, with the company's shares recovering amid the probe and ongoing pressure from Washington, as covered in Nvidia's recent market turbulence.
In his letter, Bennet urged the administration to engage with countries hosting Megaspeed infrastructure—such as Singapore, Malaysia, and Indonesia—to "address potential violations of export controls." He also requested consideration of "specific punitive measures against Megaspeed, as well as stronger approaches to export controls and enforcement."
The Colorado Democrat's push comes as Senate Democrats ramp up oversight of the Trump administration's handling of national security matters. Just last month, a group of Senate Democrats probed Health and Human Services Secretary Robert F. Kennedy Jr. over gifts from a security consultant, as reported in the RFK Jr. gifts inquiry. Meanwhile, progressive leaders like Sen. Bernie Sanders have been vocal about the need for aggressive oversight, recently backing Sen. Chris Van Hollen for Senate Democratic leader in a rebuke of Chuck Schumer, according to Sanders' leadership endorsement.
Bennet's letter signals that Democrats intend to keep pressure on the administration over its export control enforcement, particularly as concerns grow about China's access to advanced American technology. The Megaspeed case could become a flashpoint in the broader debate over how aggressively the U.S. should police the flow of AI chips to adversaries.
The administration has yet to respond to Bennet's request. The Justice Department, Commerce Department, State Department, and ODNI did not immediately comment on the letter.
