Malaysian authorities are investigating whether local laws were breached in the shipment of servers that may have contained advanced AI chips subject to U export controls.

The case is linked to a fraud investigation in Singapore, where three men were recently charged over transactions involving servers supplied by US firms. The equipment was allegedly transferred to Malaysia and may have included Nvidia's artificial intelligence chips.

The Malaysian government confirmed it is working closely with the United States and Singapore to determine whether US-sanctioned chips were involved. Authorities aim to find effective measures to prevent such transactions from violating trade regulations.

Singapore has not specified whether the chips in question fall under US export restrictions but acknowledged they were used in servers that passed through Malaysia.

US officials are also examining whether DeepSeek, a Chinese AI firm whose technology gained attention in January, has been using restricted US chips.

Washington has tightened controls on AI chip exports to China, and any unauthorised shipments could lead to further scrutiny of supply chains in the region.