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Bessent blames Lutnick and Commerce Department over Nvidia chip export controls

U.S. Treasury Secretary Scott Bessent criticized Commerce Secretary Howard Lutnick's department for failing to add Megaspeed to the export control list, while also questioning Nvidia's diligence in preventing chip sales to shell companies.

CNBC broadcast screen showing Treasury Secretary Scott Bessent with a lower third graphic reading: 'SEC. BESSENT: COMMERCE DID NOT ADD MEGASPEED TO EXPORT CONTROL LIST.'
Image: @CNBC

U.S. Treasury Secretary Scott Bessent pointed the finger directly at Commerce Secretary Howard Lutnick and the Commerce Department on Friday, blaming the agency for failing to place Nvidia customer and partner Megaspeed on the U.S. export control list. In an appearance on CNBC, Bessent argued that the government possesses all necessary regulatory authorities and only needs to implement them properly to prevent leakage in the chip export regime.[1][2][3][5][7][9]

Bessent also targeted Nvidia, questioning whether the company mounted a robust effort to stop leakage and avoid selling chips to "what were obviously pass-through shell companies." He warned that the Nvidia board's decision to remove Jensen Huang as chief executive officer does not let the rest of the chipmaker off the hook regarding accountability for sales tied to Megaspeed.[2][5][6]

The public rift reflects widening political fallout in Washington following Huang's exit, as Lutnick faces mounting pressure and accusations that his department failed to take adequate measures to keep advanced artificial intelligence chips out of China.[4][8][9]

Key facts

  • Treasury Secretary Scott Bessent blamed Commerce Secretary Howard Lutnick and the Commerce Department for failing to blacklist Nvidia partner Megaspeed.
  • Bessent questioned on CNBC whether Nvidia made a robust effort to prevent chip leakage and avoid selling to obvious pass-through shell companies.
  • Bessent stated that the Nvidia board's ouster of Jensen Huang does not relieve the company of responsibility over AI chip sales to Megaspeed.
  • Lutnick is facing accusations that the Commerce Department did not do enough to prevent Nvidia's advanced AI chips from reaching China.
  • During Bessent's televised remarks, a CNBC banner stated that authorities for chip controls are already available and only need implementation.

Sources 路 9 sources

  1. TH

    The Hill@thehillPost on X 路

    Bessent points at Lutnick in Nvidia chip blacklist spat https://t.co/ZlqnHYhGon

    Open source
  2. CB

    Crypto Banter@crypto_banterPost on X 路

    馃毃BESSENT SAYS NVIDIA BOARD FIRING JENSEN HUANG DOES NOT END ACCOUNTABILITY! @SecScottBessent said on @CNBC that the @nvidia board鈥檚 removal of Jensen Huang does not let the rest of the company off the hook over the AI chip sales to Megaspeed. He questioned whether Nvidia knew its client or stopped leakage to obvious pass-through shell companies.

    Open source
  3. RE

    Reuters@ReutersPost on X 路

    Bessent blames Commerce Dept over lack of export controls for Nvidia partner Megaspeed https://t.co/96iKrJLem6

    Open source
  4. BL

    Bloomberg@businessPost on X 路

    Commerce Secretary Howard Lutnick is confronting accusations that his department didn鈥檛 do enough to keep Nvidia's prized artificial intelligence chips out of China鈥檚 hands. Read the full story: https://t.co/LlDiaizyVa 馃摲: Andrew Harnik/Getty https://t.co/5mf6oLfdDI

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  5. CN

    CNBC@CNBCPost on X 路

    U.S. Treasury Secretary Scott Bessent weighs in on Nvidia and Megaspeed: "Was there a robust effort at Nvidia to make sure that there was no leakage and that they were selling to what were obviously pass-through shell companies?" https://t.co/d55K9R3Bo7

    Open source
  6. TT

    The Times Of India@timesofindiaPost on X 路

    #US treasury secretary #ScottBessent on Friday slammed #Nvidia and commerce secretary #HowardLutnick over the ongoing spying row, saying the chip-making company had no robust controls to identify whether any spying was taking place. Details here 馃敆 https://t.co/FCTo3Bz2AI Don鈥檛 miss the complete coverage - get the TOI App 馃憠 https://t.co/ogFaRsVinV

    Open source
  7. FT

    Financial Times@FTPost on X 路

    Bessent blames Lutnick鈥檚 commerce department for failure to blacklist Megaspeed https://t.co/5RZ6GuTO0u

    Open source
  8. BL

    Bloomberg Law@BLawPost on X 路

    Fallout from Jensen Huang鈥檚 ouster as Nvidia CEO is reaching deep into Washington, where Commerce Secretary Howard Lutnick is confronting accusations that his department didn鈥檛 do enough to keep the company鈥檚 prized AI chips out of China鈥檚 hands. https://t.co/fbPbAv6gxM

    Open source
  9. TW

    The Washington Post@washingtonpostPost on X 路

    Breaking news: Treasury Secretary Scott Bessent blamed the Commerce Department for failing to restrict Megaspeed, a Nvidia customer and the company at the heart of Jensen Huang鈥檚 spy-sex scandal, from exporting chips. https://t.co/jOa4ydMuBQ

    Open source