Bessent blames Commerce over Nvidia chip exports

Bessent accuses Commerce of oversight failure

US Treasury Secretary Scott Bessent blamed the Commerce Department, run by Howard Lutnick, for failing to properly oversee the export of high-spec Nvidia chips.

Huang's affair exposed security breach

Jensen Huang left Nvidia after revelations he had an affair with a former Megaspeed executive who was also allegedly a Chinese spy. Megaspeed had been buying advanced chips from Nvidia.

Bessent frustrated by delays and leakage

Bessent said he was frustrated by delays in putting Megaspeed on the export control list and reports of leakage of AI chips into China.

“President Trump made it very clear that China should not receive any Nvidia chips above H100s, so any leakage is very frustrating because it hurts our great companies in the AI race, because it gives the Chinese an advantage.”

Bessent also points finger at Nvidia

Bessent told CNBC the real story should be whether Nvidia knew its client and made robust efforts to prevent leakage to pass-through shell companies. Anyone at the company should be held accountable.

“Did Nvidia know their client, and was there a robust effort at Nvidia to make sure that there was no leakage and that they were selling to what were obviously pass-through shell companies?”

Congress summons both Huang and Lutnick

Jensen Huang has been summoned to testify before the Senate Banking Committee about his affair. Commerce Secretary Lutnick has been summoned to appear before the committee in December.

Democrats investigate tariff decision

Democrats on key committees are investigating how Nvidia was allowed to sell advanced H200 chips to Chinese firms after importing them from Taiwan for inspection under a twenty-five percent tariff.

“Trump's use of the statute appears to have done the opposite, undermining US national security and putting Americans at risk.”