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Commerce chief faces scrutiny over Nvidia spy scandal fallout

Summarised from 11 outlets · 22 reports · Updated 14 Nov, 07:44 · Archive

Commerce Secretary Howard Lutnick faces investigations and congressional testimony demands following revelations that Nvidia's CEO had an affair with an alleged Chinese spy.

Nvidia CEO Jensen Huang resigned on Thursday after admitting to extramarital affairs, including with Alice Huang, a Megaspeed executive whom US intelligence suspects of being a Chinese spy. A second affair with a senior Nvidia executive also emerged. The scandal has triggered multiple congressional investigations and a high-level Cabinet dispute.

House Democrats called for an investigation into Lutnick on Thursday, alleging he failed to act despite being briefed on Huang's relationship with the suspected spy. Rep. Ted Lieu told Fox News that Lutnick "needs to be investigated" over his role in the matter. Rep. Ro Khanna said the administration needed transparency about what officials knew, pointing out that Secretary of State Marco Rubio knew about the Chinese spy and was later invited on a China trip.

The Senate Banking Committee summoned both Huang and Lutnick to testify in separate hearings on 3 and 10 December respectively. Three House committees separately demanded Huang and Nvidia General Counsel Tim Teter appear for hearings on 1 and 2 December. Senate Banking Chairman Tim Scott said the American public deserved answers about national security concerns.

The core issue is Megaspeed International, a Singapore-based company and one of Nvidia's largest customers that has purchased over $4.8 billion of advanced AI chips in two years. Multiple Trump administration departments—Treasury, Defence, State and the US Trade Representative's office—had favoured placing Megaspeed on the Commerce Department's Entity List, which restricts exports to companies deemed national security risks, for months before action was taken.

Treasury Secretary Scott Bessent publicly blamed Lutnick on Friday, telling CNBC: "Treasury, War, USTR, and State were in favour of putting Megaspeed on the entity list for months, but Commerce has the pen." Bessent said the Commerce Department had responsibility for the decision. According to reports, Bessent confronted Lutnick about the delay during a Situation Room meeting, with other officials siding with Bessent. Lutnick reportedly responded only that he would "look into it".

Lutnick received a classified memo warning him of Jensen Huang's relationship with Alice Huang before Trump's mid-May trip to China, according to reporting. Despite this intelligence, the Commerce Department took no action against Megaspeed or updated enforcement of chip export restrictions to Southeast Asia. Reports indicate Lutnick resisted pressure from other Cabinet officials to act.

Lutnick has agreed to testify voluntarily, a Commerce Department spokesman told NBC News. White House officials are discussing whether he should be pushed out, according to sources who spoke to Reuters on Thursday. The White House and President Trump are standing by Lutnick, who Huang described as his closest friend in the administration. Bessent declined to comment on reported tensions with Lutnick. Megaspeed and China have denied wrongdoing.

Commerce chief faces scrutiny over Nvidia spy scandal fallout
Image: Independent World

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In this story: Howard Lutnick · Jensen Huang · Alice Huang · Scott Bessent · Commerce Department · Nvidia · Megaspeed International · China

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem · Corrections log