Nvidia scandal fallout widens as Trump's treasury secretary blames cabinet colleague

US Treasury Secretary Scott Bessent has blamed the Commerce Department, run by Howard Lutnick, for failing to properly oversee the export of high-spec Nvidia chips, as the fallout from the scandal widens. Jensen Huang was ousted as Nvidia CEO after revelations he had an affair with a businesswoman who was also allegedly a Chinese spy. Bessent's comments come after Lutnick was called to testify before the Senate Banking Committee next month over the Commerce Department's role in allowing Nvidia to export its advanced chips.

Other congressional committees have asked both Lutnick and his department to retain all records relating to Nvidia and Huang. Bessent said he was "frustrated" by delays in putting the company on the export control list and reports of leakage of AI chips into China. Last year, the Commerce Department had been investigating Megaspeed over suspicions it had been smuggling some of Nvidia's advanced AI chips into China, according to the New York Times.

Megaspeed has been contacted for comment.