The Malaysian government has confirmed that it is working closely with multiple agencies to assist in an ongoing investigation into a suspected fraud case involving Nvidia AI chips, which may have been routed through Malaysia.

The Case at a Glance

The case, which first gained traction in early March 2025, revolves around allegations that Nvidia's high-performance AI chips—reportedly embedded in servers—were fraudulently moved from Singapore to Malaysia. These chips, which are typically used in powerful data centers and AI development, have become increasingly valuable amid a global AI boom.

The Ministry of Investment, Trade and Industry (MITI), led by Tengku Datuk Seri Zafrul Abdul Aziz, is taking the allegations seriously and has pledged full cooperation with the authorities involved.


Who's Involved in the Investigation? 

According to the minister, the probe is being conducted by a multi-agency task force that includes:

This coordinated approach reflects the complexity and seriousness of the issue, especially given the high value and restricted nature of advanced AI chips like Nvidia's, which are sometimes subject to export controls and national security considerations.


Background: How Did the Case Come to Light?

On March 3, MITI issued an official statement confirming its investigation after reports emerged from Singapore. These reports quoted Singapore's Law and Home Affairs Minister K. Shanmugam, who revealed that servers suspected of being involved in a fraud case may contain Nvidia AI chips—and that they had allegedly been moved from Singapore to Malaysia.

Singaporean media further reported that the chips were embedded in servers supplied by Dell and Supermicro, two well-known American hardware manufacturers. These servers were initially sent to a Singapore-based company, and then allegedly transported into Malaysia under questionable circumstances.


Why Nvidia Chips?

Nvidia's AI chips—especially the high-end H100 and A100 models—are in massive demand due to their use in generative AI, machine learning, and data analytics. With export restrictions placed on some of these chips in regions like China and others due to geopolitical concerns, their movement is closely monitored.

This makes them a hot commodity for both legitimate enterprises and bad actors looking to bypass regulations or acquire them for unauthorized uses.


Malaysia's Position: Transparency and Cooperation

Tengku Zafrul assured that any updates on the investigation will be shared with the media in due time. He also reiterated MITI's stance on compliance and enforcement, particularly when it comes to sensitive technologies entering or transiting through Malaysia.

"We are cooperating fully with the investigation team, and we take such cases very seriously," he told reporters during the Iftar Kasih Ukhwah Programme in Petaling Jaya earlier this week.


What Happens Next?

At this stage, the investigation is ongoing, and Malaysian authorities are actively working to determine the extent of the chip movement, whether there were any regulatory violations, and who the responsible parties may be.

Given the international implications of the case—especially with large multinational tech firms and cross-border transfers involved—it's likely that more developments will unfold in the coming weeks.


​Final Thoughts

This case serves as a reminder of the growing importance of digital and tech governance, especially in a world increasingly driven by AI. With high-value components like Nvidia's AI chips becoming central to technological advancement, the scrutiny around their movement and usage is only set to increase.

Malaysia's swift action and collaborative approach show a commitment to transparency, international cooperation, and protecting its tech infrastructure from becoming part of illegal supply chains.