Megaspeed said its internal probes found no evidence of illegal chip transfers. The company denied allegations that it gave Beijing backdoor access to NVIDIA chips through Alibaba. It said, "These thorough investigations have confirmed that there has been no evidence of any violations." Megaspeed may now take legal action against Bloomberg.
In light of the allegations, Megaspeed is considering legal action against Bloomberg for what it calls misleading reporting.
The company stressed its commitment to complying with export control regulations.
It said, "These thorough investigations have confirmed that there has been no evidence of any violations concerning the illicit transfer of chips or any illegal activities."
Bloomberg had alleged that Megaspeed rented computing capacity to Alibaba and may have given Beijing a backdoor access to advanced NVIDIA chips.
However, the company has vehemently denied these allegations. It reiterated its compliance with export control regulations and said inspections found no evidence of illegal chip transfers or other illicit activities.
Megaspeed revealed that it was reviewed by the US Commerce Department's Bureau of Industry and Security, Malaysia's Ministry of Investment, Trade and Industry, and NVIDIA.
The company stressed that these reviews found no evidence of violations involving illegal chip transfers or other illegal activities.
Megaspeed has not ruled out the possibility of legal action against Bloomberg to protect its reputation.
The company said it takes these allegations seriously and is prepared to hold the publication accountable for what it calls the misleading nature of its article.
This move comes amid increasing scrutiny on NVIDIA CEO Jensen Huang over his alleged relationship with Alice Huang, a former Megaspeed business executive whom US intelligence agencies have reportedly identified as a Chinese spy.