Kuala Lumpur:Malaysian police initiated an investigation in April 2025 in response to United States allegations regarding the illegal procurement and diversion of high-performance artificial intelligence (AI) chips produced by Nvidia through Malaysia.

According to BERNAMA News Agency, Home Minister Datuk Seri Saifuddin Nasution Ismail confirmed that a comprehensive investigation began shortly after the allegations arose. The focus is on whether Malaysia served as a transit hub or if local proxy companies were involved. The investigation is being conducted under the Strategic Trade Act 2010, with the involvement of several regulatory agencies, including Bank Negara Malaysia, the Inland Revenue Board, the Malaysian Communications and Multimedia Commission (MCMC), Customs, and the police. The Ministry of Investment, Trade and Industry (MITI) is leading the effort with a dedicated task force called STAC under the Strategic Trade Act.

The announcement came during a press event at the MADANI Kita Programme and the 2026 MADANI Adopted Village and MADANI Adopted School Handover Ceremony organized by the Malaysian Volunteer Department (RELA) at Kampung Sungai Tiram. RELA director-general Datuk Rosli Yaakub was also present.

Saifuddin Nasution addressed concerns about the impact on Malaysia and the government's response to uncertainties surrounding Nvidia's leadership. On November 12, Nvidia announced the resignation of its co-founder Jensen Huang as president, chief executive officer (CEO), and board member, ending his 33-year tenure.

The minister emphasized the seriousness of the allegations and confirmed that progress updates on the investigation are regularly communicated to MITI for further action. He noted the complexity of the investigation and the multiple layers involved in gathering evidence related to the alleged diversion or illicit procurement. The investigation findings are shared with MITI to inform relevant parties.