Critics say Lutnick failed to cut off diversion of Nvidia chips to China
Summary
Commerce Secretary Howard Lutnick faces scrutiny over the department’s handling of a probe into whether Nvidia AI chips sold to Singapore-based Megaspeed International were diverted to China. Critics point to the department’s failure to place Megaspeed on its Entity List and question whether Lutnick’s business ties affected oversight; the department did not respond to a request for comment.Key Facts
- The Commerce Department’s Bureau of Industry and Security opened an investigation into Nvidia chip sales to Megaspeed in 2024 to determine whether the chips were being redirected to China.
- The probe was later transferred to the Justice Department, which declined to comment on the investigation.
- Megaspeed is suspected of illegally shipping Nvidia’s advanced AI chips to Chinese entities in violation of U.S. restrictions.
- The Commerce Department has not added a company to its Entity List since October 2025.
- Treasury Secretary Scott Bessent reportedly confronted Lutnick over the department’s failure to add Megaspeed to the Entity List.
- Senator Elizabeth Warren called on Lutnick and Commerce Department official Jeffrey Kessler to explain why they had not closed export-control loopholes.
- Before Trump nominated Lutnick to lead the Commerce Department, he chaired and ran Cantor Fitzgerald, which held about $1.2 billion in Nvidia stock at the time.
- A company Lutnick ran, BGC Group, held a 33% stake in a joint venture with China Credit Trust, a Chinese state-owned company.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.
