Lutnick faces scrutiny as Nvidia scandal fallout grows

The allegations surrounding Nvidia CEO Jensen Huang's reported affair with Alice Huang, a former executive at a Singapore-based company, have raised concerns that a foreign intelligence operation may have been targeting a powerful businessman with close ties to the White House. US intelligence reportedly suspects Alice Huang of having links to Chinese intelligence, although Beijing has denied the allegations.

Nvidia's close relationship with the Trump administration comes into question as the affair has opened up a larger question about what the administration knew and did about the situation. Commerce Secretary Howard Lutnick, responsible for controlling exports of sensitive American technology, was briefed about the concerns surrounding Alice Huang and Megaspeed, an Nvidia customer suspected of diverting advanced chips to China. However, Lutnick resisted taking action against the company, a decision now under scrutiny.

The investigation into Megaspeed was reportedly stopped after Nvidia intervened, with Nvidia's general counsel contacting Commerce Department investigators. This has led to questions about whether Lutnick was warned about the risks and why his department failed to act. Republican and Democratic officials are questioning the administration's approach to China policy, with Congress seeking answers about how the Commerce Department vetted Chinese companies approved to buy AI chips.

Jensen Huang's planned testimony to the House Select Committee on China has not eased the pressure, as Republican Representative John Moolenaar emphasized the need for American AI firms to succeed without jeopardizing national security. The White House has not commented on the matter, but President Trump has expressed his confidence in Lutnick, describing him as "the most transformative commerce secretary in modern history."