Howard Lutnick clashed with officials over Nvidia chip sales

Commerce Secretary Howard Lutnick has frequently clashed with top officials over how to regulate sales of advanced technology to Asia, particularly Nvidia chip sales in the region, according to The New York Times. Critics say Howard Lutnick and his department have shielded Nvidia as concerns grow over artificial intelligence chip sales to firms like Megaspeed, a Singapore-based company suspected of smuggling Nvidia chips to China.

There is broad agreement among most senior Trump administration officials that the United States should more aggressively tighten controls on Nvidia advanced chips to keep China from using them to catch up in artificial intelligence. Over the past year, Mr. Lutnick has frequently clashed with top administration officials and members of Congress who say the Commerce Department has become too cozy with Nvidia and Jensen Huang.

The issue exploded into public view following revelations that Jensen Huang was in a relationship with Alice Huang, a top executive at Megaspeed whom U.S. Intelligence agencies believe is a Chinese spy. Jensen Huang announced he was stepping down from the company, sending the company shares tumbling.

Within the Commerce Department, Nvidia is treated differently than current and former officials say, with its issues given high priority and sent through specific channels. Mr. Lutnick frequently calls and messages with Mr. Huang, and the department prepares carefully for their private meetings in Mr. Lutnick office.

All Nvidia matters are routed through Jeff Kessler, a top deputy to Mr. Lutnick. Nvidia general counsel Tim Teter is known within the department for his aggressive outreach. An inquiry inside the agency into whether Megaspeed was smuggling Nvidia chips into China was shut down late last year and transferred to the Justice Department after Mr. Teter reached out directly to investigators.

Friction erupted last week when Treasury Secretary Scott Bessent confronted Mr. Lutnick during a White House meeting over his handling of Megaspeed, demanding to know why the United States had not already banned chip sales to the company. Mr. Lutnick responded that new measures could be put in place soon.

A spokeswoman for the Commerce Department denied that the interaction happened and said the department worked in concert with other agencies to issue export controls.