Jensen Huang resigned from his post as Nvidia CEO, stepping down from the semiconductor giant after confessing to an extramarital affair with Alice Huang, a tech executive at Singapore-based Megaspeed who is accused of being a Chinese spy, as TechCrunch reported.
The fallout has exposed divisions within Trump’s economic team. Treasury Secretary Scott Bessent went on live television Friday to criticize the Commerce Department’s handling of export controls, telling CNBC that the Treasury, Defense, and State departments along with the Office of the United States Trade Representative had supported placing Megaspeed on a trade blacklist for months.
“Treasury, War, USTR, and State were in favor of putting Megaspeed on the entity list for months, but Commerce has the pen,” said Mr. Bessent, Treasury Secretary Scott Bessent, on CNBC’s Squawk Box. “You will have to ask them about their internal processes.”
U. S. Treasury Secretary Scott Bessent blames Commerce Secretary Howard Lutnick over Nvidia chip mess: "Treasury, War, USTR and State were in favor of putting Megaspeed on the entity list for months." pic.twitter.com/0BTlHymwUY
Cabinet Clash Over Megaspeed
Over a two-year period, The Information said that Megaspeed and Speedmatric, its Malaysian unit, exported a minimum of $7.5 billion worth of Nvidia chips to China. As Reuters stated, the firm has acquired upwards of $4.8 billion in sophisticated Nvidia AI chips beginning in June 2024.
Bessent and Commerce Secretary Howard Lutnick reportedly clashed during a meeting in the White House Situation Room, where Bessent confronted Lutnick over why export controls had not been implemented against Megaspeed, according to Axios. Other Cabinet officials took Bessent’s side, and the group later met with President Trump in the Oval Office, Fox News reported.
Commerce Dept Spokesperson tells me Secretary Howard Lutnick has agreed to voluntarily testify before the Senate Banking Committee Dec 10th about advanced NVIDIA chips possibly evading export controls and possibly going to China. Spokeswoman Kristen Eichamer tells me, “Secretary…
“Let’s get it done,” said President Donald Trump.
Even after the order, Lutnick demurred on proceeding immediately, telling the group, “I’ll develop some options and come back,” to which officials replied that the decision was final and that he must “go f—ing execute,” Fox News reported. Commerce Department spokeswoman Kristen Eichamer denied that the confrontation occurred, according to Axios.
Recent reports raise serious concerns about our national security and the protection of sensitive U. S. technology. I am requesting that NVIDIA CEO Jensen Huang and Commerce Secretary Howard Lutnick testify before the Senate Banking Committee. The American people deserve… pic.twitter.com/Xu1kiNzkhW
Comprising this Republican-backed coalition are prominent figures from the House Intelligence Committee, the House Committee on Foreign Affairs, and the House Select Committee on the Chinese Communist Party. House Foreign Affairs Committee Chairman Brian Mast, Intelligence Committee Chairman Rick Crawford, and Select Committee Chairman John Moolenaar requested a written confirmation of Huang’s acceptance by 8 p.m., as the two sides have been in active negotiations.
The New York Times said that intelligence professionals suspected Alice Huang—unrelated to the Nvidia founder—was suborned by China’s Ministry of State Security to collect secrets and potentially sway Nvidia’s lobbying efforts for expanded Chinese access to U.S. technology. China has rejected the espionage allegations as unsubstantiated.
Lawmakers Launch Investigations into Export Licensing Processes
Lawmakers from both parties have launched investigations into the administration’s export licensing process. Senate Banking Committee Chairman Tim Scott sent letters calling for both Huang and Lutnick to testify publicly, ABC News reported. Sen. Tim Scott, R-S.C. announced that Lutnick agreed to appear voluntarily before the panel on December 10, according to Yahoo Finance.
“Secretary Lutnick has proactively agreed to appear voluntarily before the Banking Committee to address their questions,” said Kristen Eichamer, Commerce Department spokeswoman.
Kennedy: Apparently, the Department of Commerce greenlit the sale of $4 billion in advanced chips to the spy’s company. I'd like to hear from the Secretary of the Treasury. And more to the point, the Secretary of Commerce. I mean, why were they selling the chips? This whole thing… pic.twitter.com/Yj76njQphy
The Senate committee has requested Huang to appear on December 3, with Chairman Scott threatening a subpoena if he fails to appear voluntarily, ABC News reported. House committees have separately asked Huang to sit for a closed-door transcribed interview on December 1, ABC News reported.
Democratic lawmakers on Thursday opened an inquiry into how the Trump administration handled Nvidia’s chip sales, writing a letter to Lutnick that criticized a revenue-sharing agreement established in August 2025, when Nvidia and AMD agreed to share 15 percent of their revenue from chip sales to China with the U.S. government, TechCrunch reported. Republican Sen. John Kennedy also raised concerns regarding the administration’s trade and regulatory decisions.
WOW — Bessent throws Lutnick under the bus: "Treasury, War, USTR, and State were in favor of putting Megaspeed on the entity list for months, but Commerce has the pen. You will have to ask them about their internal processes." pic.twitter.com/vJEegPggTa
Nvidia Stock Declines as Financial Ties Draw Scrutiny
Newsweek said that Nvidia stock dropped roughly 14 percent at the start of Thursday before paring most of those drops to finish the session down 4.3 percent. The stock fell another 2 percent Friday, bringing its two-day decline to about 6.3 percent, and analyst Ives cut his price target for Nvidia from $300 to $225, Newsweek reported.
Financial ties between the Commerce Department and major chipmakers have drawn scrutiny from commentators. Investment bank Cantor Fitzgerald, which Lutnick led for 35 years before passing management to his sons Brandon and Kyle, held about $1.2 billion in Nvidia stock prior to the second Trump term, according to Fortune. The firm held a $362.3 million stake in Nvidia, representing 7 percent of its portfolio, according to the Washington Examiner.
Howard Lutnick has "proactively agreed" to appear before Congress “Secretary Lutnick has proactively agreed to appear voluntarily before the Banking Committee to address their questions,” a spokesperson for Lutnick, Kristen Eichamer tells @KitMaherCNN
Despite the pressure on Lutnick, Reuters reported Thursday that President Trump “maintains complete confidence in the secretary and his ability to carry out the position,” according to Newsweek.
More on Scott Bessent
This Administration's greed is out of control, putting America's national security at risk. Commerce Secretary Howard Lutnick has betrayed the public trust and must immediately resign. If he fails to do so on his own accord, Congress must hold him accountable and move forward…