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Bessent Faults Commerce Dept. for Failing to Blacklist Megaspeed
The New York Times • • general
Key Points:
- Treasury Secretary Scott Bessent blamed the Commerce Department for the government's failure to sanction Singaporean data center firm Megaspeed, stating that while multiple departments supported the measure, Commerce holds the authority to act.
- The Treasury, Defense, State Departments, and U.S. trade representative had advocated for placing Megaspeed on the trade blacklist entity list for months, but Commerce has not moved forward.
- Bessent questioned Nvidia's due diligence regarding its client Megaspeed, suggesting accountability is needed for any lapses in preventing sales to pass-through shell companies.
- Frustration is rising within the U.S. administration and Congress over Megaspeed, which is led by Alice Huang, a woman identified by U.S. intelligence as a Chinese government asset.
- Nvidia CEO Jensen Huang resigned following revelations of his relationship with Alice Huang and another affair, causing a significant drop in Nvidia's stock price.
