What happened
US Treasury Secretary Scott Bessent has publicly blamed Commerce Secretary Howard Lutnick's department for failing to place Megaspeed on the US entity list for months, despite support from several government agencies. Bessent told CNBC that Commerce holds authority over export control decisions and must explain its internal process.
The dispute follows revelations that Nvidia CEO Jensen Huang was ousted after an affair with a businesswoman allegedly linked to Chinese intelligence. Megaspeed, the firm she worked for, had been investigated over suspicions it smuggled advanced Nvidia AI chips into China.
Bessent said he was frustrated by delays and reported chip leakage, noting that President Trump had made clear China should not receive Nvidia chips above H100s. He also said Nvidia itself must be examined for whether it knew its clients and took robust steps to prevent sales to pass-through shell companies.
Lutnick has been summoned to testify before the Senate Banking Committee next month, and Huang has also been called to appear. Congressional Democrats have asked the Commerce Department to retain all records related to Nvidia chip sales, while two committee leaders have opened investigations into how the advanced chips were allowed to reach Chinese firms.
