Lutnick Draws Bipartisan Demands for Answers on Megaspeed as Nvidia's Huang Resigns

Since reports surfaced that Jensen Huang had a relationship with a woman U.S. intelligence suspects of working for Chinese intelligence, the fallout has moved from the Nvidia founder to the Trump cabinet member who oversees chip export controls. Huang resigned as Nvidia's chief executive on Thursday, Nov. 12, effective immediately. Nvidia named CFO Colette Kress interim CEO. Nvidia shares were down about 4.7% in morning trading.

The question now facing Commerce Secretary Howard Lutnick is simple. Why isn't Megaspeed on the Commerce Department's entity list?

What Megaspeed is and why it matters

Megaspeed is a Singapore-based data center company. It has bought more than $4.8 billion in Nvidia AI chips since June 2024 and is under investigation over alleged diversion of those chips to China. Its assets reportedly jumped from $33 million in 2023 to $3 billion in 2024.

Alice Huang, a former Megaspeed executive and no relation to the Nvidia CEO, is the woman U.S. officials suspect of working for Chinese intelligence. China denies the allegation and has called the claims a pretext for a technology blockade.

Jensen Huang told staff last weekend he had been "unfaithful" to his wife. The entity list is the Commerce Department's trade blacklist. Landing on it sharply restricts a company's ability to buy sensitive U.S. technology.

The Situation Room account

Axios reported, citing its own sources, that Treasury Secretary Scott Bessent confronted Lutnick in the White House Situation Room last week. According to that account, Bessent asked why Megaspeed was not on the list. Lutnick reportedly stammered, then said: "I don't know. I'll look into it." One person familiar with the exchange called the answer "bullshit." Outlets citing the Axios account give the date of the exchange as Nov. 5 or Nov. 6.

Commerce spokeswoman Kristen Eichamer denied it outright: "This is false. Secretary Bessent and Secretary Lutnick had no such conversation." The department also told The New York Times that adding a company to the entity list is a decision for the whole administration, not Commerce alone.

Axios also reported that Trump signed off on action against suspected Nvidia chip diversion three times this year, in May, in August and on Nov. 5 in the Oval Office, and that Lutnick held it up each time. Other reports say Lutnick received an intelligence memo flagging the concern. Lutnick has not responded to requests for comment, and neither he nor Rubio has been formally accused of wrongdoing in connection with the episode.

Republicans want answers too

This is not only a Democratic attack. Sen. John Kennedy, R-La., told Politico on Wednesday: "Secretary Lutnick needs to answer that in front of God and country. If I were he, I'd call a press conference this afternoon and explain what happened." He said Lutnick should not "wait on Congress."

Rep. Bill Huizenga, R-Mich., called on Lutnick to testify. "I don't think he's been very responsive," he said, adding that the Bureau of Industry and Security has "been less responsive than they should be."

Rep. John Moolenaar, R-Mich., who chairs the House Select Committee on the Chinese Communist Party, said lawmakers want "transparency" and a briefing on Beijing's influence on Nvidia and on U.S. security policy.

Democrats are lining up investigations

Democrats take control of the House in January, and they are already positioning. Rep. Ted Lieu, D-Calif., who is expected to chair the House Democratic Caucus, told Fox News Digital that Lutnick "needs to be investigated over his role." Rep. Ro Khanna, D-Calif., said, "We need to understand what they knew." He did not rule out examining Secretary of State Marco Rubio, saying Rubio "knew about the Chinese spy, and then got invited to the China trip."

Neither lawmaker explained how an investigation would proceed. Neither Lutnick nor Rubio has been formally accused of wrongdoing.

Sens. Elizabeth Warren, D-Mass., and Chris Coons, D-Del., sent a letter Wednesday evening to Lutnick, Rubio and White House chief of staff Stephen Miller. It demands that they "preserve all records" on dealings with Nvidia, its China exports and Huang's affair. The letter notes reports that Trump officials were aware of concerns "yet did not move to block the continued flow of advanced AI chips to Megaspeed." Warren and Coons are in line to lead the Senate Banking and Foreign Relations committees, which would oversee any investigations with subpoena power.

Warren said Huang's resignation "does not absolve him, other executives, or the company as a whole," and that Trump officials must still explain why they have not closed export control loopholes.

Trump's position

Trump has defended Huang in recent days, calling him "an honorable guy." Trump approved sales of Nvidia's H200 chip to China in December 2025, with 25% of proceeds going to the U.S. government, over objections from China hawks in both parties. Huang joined Trump's May trip to Beijing, in hopes of unlocking stalled H200 sales. No breakthrough was announced.

Trump is due in Shenzhen next week for the APEC summit, where he is scheduled to meet Xi Jinping. Whether Huang, or any Nvidia executive, joins that delegation is now in doubt.

What comes next

Warren and Coons asked the three officials to confirm by next Tuesday that they will comply and have begun preserving documents. The White House did not offer an immediate response. Whether Megaspeed lands on the entity list before Trump sits down with Xi is the open question.