Scoop: Commerce Department received national security warning on Nvidia CEO affair
The agency cleared advanced AI chip sales in May.
TL;DR
- Commerce Secretary Howard Lutnick was warned via a classified memo about Nvidia CEO Jensen Huang's relationship with suspected Chinese spy Alice Huang.
- The memo, overseen by Secretary of State Marco Rubio, drew on surveillance and a chip-smuggling investigation into Alice Huang's company, Megaspeed.
- The warning circulated before President Trump's trip to China, where Jensen Huang later joined the delegation.
- The Commerce Department cleared approximately 10 Chinese companies to purchase Nvidia's H200 chips around the same time.
- Some export approvals predated the national security warning.
- Jensen Huang acknowledged an affair, and Nvidia's board has launched an independent investigation, expressing confidence in his leadership.
- Lawmakers from both parties are demanding investigations and testimony from Jensen Huang.
- Top Democrats have questioned Howard Lutnick about chip approvals to companies with concerning links to China and potential Chinese intelligence ties to Jensen Huang.