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The close relationship between former Nvidia boss Jensen Huang and US President Donald Trump has drawn intense scrutiny following allegations regarding Huang’s reported affair with Alice Huang, a former executive at Singapore-based Megaspeed. US intelligence reportedly suspects Alice Huang of having links to Chinese intelligence, a claim that Beijing has rejected, raising concerns that a foreign intelligence operation targeted someone with exceptional access to the American president.
Nvidia, Export Controls, and the China Policy Debate
Nvidia produces the essential chips powering the artificial intelligence revolution, placing Jensen Huang at the center of a major debate within the US administration regarding advanced technology exports to China. Washington has restricted these exports since 2022 to prevent Beijing from bolstering its military and technological capabilities, though enforcement remains difficult due to legal purchases in countries like Singapore and Malaysia that get diverted, or through rented computing power in overseas data centres.
Huang long argued that these restrictions were counterproductive because they shut Nvidia out of a massive market and pushed Chinese companies to develop alternatives, a view Trump appeared sympathetic to when he allowed Nvidia to resume sales of certain chips last year for a share of revenue, while keeping the most advanced Blackwell chips off limits. Nvidia’s board stated it has no reason to believe company secrets or national security were compromised by the affair, but the situation has prompted questions about what the Washington administration knew and when.
Scrutiny on Commerce Secretary Howard Lutnick
The questions point directly to Commerce Secretary Howard Lutnick, whose department managed sensitive American technology exports and faced pressure to address concerns about Megaspeed, an Nvidia customer suspected of helping divert advanced chips to China. Megaspeed chief executive Tan Yong Pong, also known as James Tan, stated on Thursday that the company takes its compliance obligations under US export control laws extremely seriously and is committed to working constructively and transparently with the government, adding that the firm cooperated with US Commerce Department inspections.
A highly classified memo regarding the risks surrounding Alice Huang and Megaspeed was shared with Lutnick, who resisted taking action against the company, placing his decision under scrutiny. Treasury Secretary Scott Bessent and other senior officials reportedly questioned why Megaspeed was not placed on the Commerce Department’s blacklist, while investigations into the Singapore-based firm were allegedly halted after Nvidia’s general counsel contacted investigators invoking a senior Trump appointee, prompting the department to freeze the probe and transfer the case to the Justice Department.
Congressional Investigations and Political Fallout
Members of Congress from both parties are demanding answers, with Democrats launching an investigation into how the Commerce Department vetted Chinese companies approved to buy AI chips, while Republicans question the administration’s approach. Representative John Moolenaar, Republican chair of the House Select Committee on China, stated that while it is in the national interest for American AI firms to succeed, companies should never jeopardize national security by giving Chinese firms access to advanced chips, and Senator Elizabeth Warren, the top Democrat on the Senate Banking Committee, stated that Huang’s resignation does not absolve him of responsibility and urged Lutnick to explain why export control loopholes remain open.
Jensen Huang’s team informed Republican lawmakers on Wednesday that he plans to cooperate with requests to testify behind closed doors. The White House did not respond to requests for comment from BBC News, though it told the New York Post that President Trump has complete confidence in Lutnick and described him as the most transformative commerce secretary in modern history, a strong show of support amid reports that officials are considering whether Lutnick should be forced out.
The BBC contacted the Commerce Department for comment regarding why the department failed to act if Lutnick had been warned and why it took so long despite pressure from other senior officials. President Trump cultivated a close relationship with Huang, participated directly in decisions regarding chip sales to China, and was briefed on intelligence concerns, leaving questions for the administration about Huang’s influence and ultimate responsibility for protecting sensitive technology.
