US Treasury secretary blames Commerce chief for delay in blacklisting Nvidia client
Treasury Secretary Scott Bessent says the Commerce Department, led by Howard Lutnick, has stalled adding Singapore‑based Megaspeed to the U.S. export blacklist despite support from the Treasury, Pentagon, State Department and USTR. Megaspeed, an Nvidia customer, is accused of routing $7.5 billion of advanced AI chips to China, a claim the company denies. The Justice Department is probing the firm, and senior White House officials are debating whether Lutnick should be removed.
Key facts
- Four agencies – Treasury, Defense, State and USTR – favored blacklisting Megaspeed for months.
- Former Megaspeed executive Alice Huang is suspected of being a Chinese spy.
- Nvidia co‑founder Jensen Huang resigned as chief executive.
- Republican Senator John Curtis questioned the Commerce Department’s commitment to American interests.
- Democratic Senator Richard Blumenthal called for Lutnick’s removal.
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Why it matters
The dispute could shape future U.S. controls on AI chip exports to China.
What changed
First published from BBC News, Hindustan Times, The Independent, Fortune and South China Morning Post