Critics charge Lutnick should have prevented diversion of sensitive Nvidia AI chips reaching China
Questions over Megaspeed oversight
Megaspeed International, based in Singapore, became one of Nvidia’s largest AI chip customers. U.S. officials believe its leader, Alice Huang, is a Chinese spy, and the company is suspected of routing Nvidia’s most advanced chips to Chinese entities in violation of a U.S. ban.
The Commerce Department uses its Entity List to restrict foreign companies and individuals considered risks to U.S. national security or foreign policy. The department has not added a company to the list since October 2025.
Officials raise concerns
Treasury Secretary Scott Bessent confronted Lutnick last week over the department’s failure to list Megaspeed, Axios reported. Bessent said Commerce had known for as long as a year that the company was run by a woman believed by the U.S. to be a Chinese spy, and “they did nothing.”
The New York Times reported that President Trump received an intelligence briefing about a year ago suggesting Alice Huang was a Chinese asset and had grown close to Jensen Huang, Nvidia’s ousted CEO. Sen. Elizabeth Warren called on officials to “act today” to prevent advanced technology from supporting China’s military.
Lutnick’s ties draw scrutiny
Lutnick developed a warm relationship with Jensen Huang, who told podcaster Joe Rogan that the two met soon after Lutnick became commerce secretary. Huang said the secretary’s office was available whenever he called to raise concerns.
A financial firm Lutnick ran, BGC Group, held a 33% stake in a joint venture with China Credit Trust, a Chinese state-owned company. At Lutnick’s confirmation hearing, senators questioned his Chinese investments and how he would protect U.S. technology; Lutnick told Sen. Deb Fischer, “I take a very jaundiced view of China.”
Ethics and wealth questions
Forbes said Lutnick and his family’s net worth doubled to $7.3 billion during his tenure, with his indirect stake in Tether valued at $5.4 billion. That stake was worth $1.7 billion in early 2025 and has since more than tripled in value.
Kathleen Clark, a Washington University in St. Louis law professor who specializes in government ethics, asked whether Lutnick was acting in the public interest and said the situation raised “a lot of red flags.” In July 2025, Lutnick posted a photo of Jensen Huang with President Trump in the Oval Office, noting Nvidia’s $4 trillion market value.
Key points
- Megaspeed is suspected of illegally shipping advanced Nvidia chips to Chinese entities.
- The Commerce Department has not added a company to its Entity List since October 2025.
- Lutnick’s relationships and financial interests have prompted questions about oversight and conflicts of interest.
- Warren urged officials to prevent advanced technology from supporting China’s military.