The scandal surrounding Nvidia has escalated into an open conflict within Donald Trump’s administration. Treasury Secretary Scott Bessent said that the Commerce Department had delayed adding the Singapore-based company Megaspeed International to the list of firms that Washington may restrict because of national security concerns.
Bessent said that the Treasury, State and Defense departments, as well as the U.S. Trade Representative, had supported the measure for months. “The Commerce Department holds the pen, so you should ask them about their internal procedures,” he told CNBC. According to him, President Trump had made it clear that China should not receive Nvidia chips more advanced than the H100.
Lutnick Faces Pressure as White House Defends Him
The public criticism is directed at Commerce Secretary Howard Lutnick, whose department is responsible for controlling exports of sensitive technologies. Axios reported that other administration officials believed Lutnick had repeatedly delayed action against companies suspected of diverting advanced Nvidia chips to China.
According to the report, the president had approved such action at least three times—in May, August and November. At a White House meeting, Bessent, Secretary of State Marco Rubio and Defense Secretary Pete Hegseth had pushed for measures against Megaspeed. The Commerce Department denies that Bessent had entered into a direct conflict with Lutnick.
The White House, however, said that Trump retains “full confidence” in the secretary. This leaves unresolved whether the dispute will lead to personnel changes or new restrictions on exports of American chips to China.
Jensen Huang’s Resignation Widens the Crisis
Jensen Huang resigned as Nvidia’s chief executive officer with immediate effect. He is a co-founder of the company and had led it for 33 years. Chief Financial Officer Colette Kress was appointed acting CEO, while the board began searching for a permanent successor among internal and external candidates.
The resignation followed reports of Huang’s extramarital relationships, including one with Alice Huang, a former executive at Megaspeed. U.S. intelligence suspects her of ties to Chinese intelligence services, but China has dismissed the claims as unsubstantiated. There is no public confirmation that state secrets or Nvidia technologies were handed over.
Megaspeed has been accused of diverting advanced Nvidia chips to China, but the company denies any wrongdoing and says it is cooperating with U.S. authorities. Nvidia has also launched an internal investigation into whether Huang was the target of a foreign intelligence operation.
Congress Demands Answers
The scandal now has a direct political dimension as well. Lawmakers from both parties are calling on Lutnick and Huang to testify about decisions related to chip exports and alleged national security risks. Huang is due to answer questions from lawmakers, while Lutnick is expected to face a hearing in December.
Huang’s resignation did not halt the investigations. It simultaneously called into question relations between the White House and major technology companies, controls on artificial intelligence exports, and the administration’s ability to pursue a unified policy toward China. Nvidia shares fell by about 4% late in trading following the announcement of his resignation.