Administration faces scrutiny over Nvidia scandal and alleged China chip transfers
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Nvidia CEO Jensen Huang resigned after reports of extramarital affairs and alleged ties to a Chinese spy, prompting internal disputes within the Trump administration over oversight of chip exports.
Nvidia chief executive Jensen Huang stepped down following revelations of multiple extramarital relationships, including one with a person suspected of working for Chinese intelligence. The disclosures have raised concerns that advanced semiconductor chips may have been transferred to China, potentially aiding a rival in the artificial-intelligence race.
Within the White House, Treasury Secretary Scott Bessent accused Commerce Secretary Howard Lutnick of failing to block a sale of Nvidia chips to Singapore-based Megaspeed, a company linked to the alleged spy. Bessent told CNBC that the Commerce Department “has the pen, and you will have to ask them about their internal processes.” Lawmakers from the Republican caucus have called for Lutnick to testify, and President Donald Trump is reportedly weighing personnel changes.
Reports indicate that Lutnick’s office has previously approved chip sales to other firms with connections to the Chinese government, and that his actions have drawn criticism for misrepresenting trade deals and complicating diplomatic negotiations. The New York Times noted that senior officials briefed President Trump about the espionage concerns as early as last year, but no decisive action was taken to halt the exports.
President Trump, who has described the U.S.–China competition in artificial intelligence as a critical national-security issue, has said he was not fully aware of the details of the alleged espionage. Critics argue that the administration’s response has been inadequate given the potential security implications.