Nvidia scandal splits Trump administration over China chip leaks

The Nvidia espionage scandal has taken a political turn, with Treasury Secretary Scott Bessent publicly criticizing Commerce Secretary Howard Lutnick over advanced AI chips reaching China. Bessent blamed Lutnick's department for failing to block exports to Singapore-based Megaspeed, a suspected front company. Bessent told CNBC the chip "leak" was "frustrating," noting several agencies had pushed for months to halt exports to Megaspeed, a decision that fell under Commerce's authority. The Commerce Department declined to act, and Secretary of State Marco Rubio did not respond to questions on the matter. The dispute follows Republican losses in midterm elections and comes as Nvidia CEO Jensen Huang resigned Thursday over an affair with Megaspeed's former director, Alice Huang, suspected of spying for Beijing. Both Huang and Lutnick face congressional hearings, with some lawmakers calling for a broader investigation.