Nvidia scandal: Howard Lutnick under pressure over alleged lack of action

Nvidia is facing a national-security and leadership crisis after co-founder and chief executive Jensen Huang resigned amid reports of personal relationships, including one with Alice Huang, who is suspected of being a Chinese spy. The concern is that her links to Singapore-based Megaspeed could have enabled China to obtain advanced Nvidia chips: the company has reportedly bought billions of dollars’ worth in recent years. Although US intelligence concerns about the relationship were circulated among senior Trump administration officials, the Commerce Department delayed adding Megaspeed to the government’s trade blacklist. Nvidia’s board announced Huang’s departure without mentioning the allegations; finance chief Colette Kress has taken over temporarily.

Commerce Secretary Howard Lutnick is under pressure over the delay and may be dismissed, according to reports. Republican and Democratic lawmakers are demanding investigations, testimony from Lutnick and Huang, and a classified briefing on Nvidia. They are also questioning what President Trump knew, given his close relationship with Huang and a reported call urging him to keep his job. The scandal has renewed debate over restricting exports of advanced chips to China, which could use them to develop military and AI capabilities. Congress is considering several export-control bills, while Chinese firms seek access to chips abroad and Beijing pursues domestic alternatives. Huang’s abrupt departure has also unsettled Nvidia’s standing in China, where he had attracted a large following.