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Bessent blames Lutnick’s Commerce, slams Nvidia chip China leakage
CNBC • • general
Key Points:
- Treasury Secretary Scott Bessent stated that the Treasury and other departments supported export restrictions on Megaspeed, a company linked to former Nvidia CEO Jensen Huang's spy-sex scandal, but the Commerce Department controls the process.
- Bessent hinted at internal disagreements within the Trump administration, revealing that Commerce Secretary Howard Lutnick resisted export controls on companies potentially diverting Nvidia AI chips to China.
- Huang resigned as Nvidia CEO after admitting to an affair with a Megaspeed executive reportedly identified as a Chinese spy, amid concerns over Nvidia's role in chip exports to China.
- Bessent expressed frustration over alleged leakage of advanced Nvidia chips to China, emphasizing the need for accountability within Nvidia regarding sales to shell companies like Megaspeed.
- The situation raises broader questions about U.S. export control enforcement and the potential impact on the AI technology race with China.
