Treasury Secretary Scott Bessent stated on Friday that his department and other administration agencies have long supported imposing restrictions on Megaspeed, the company at the center of the controversy involving former Nvidia CEO Jensen Huang.
Export Controls and Administration Friction
According to Bessent on CNBC’s “Squawk Box,” the Commerce Department holds authority over the matter and individuals must inquire about their internal procedures. The Cabinet secretary’s remarks pointing to internal administration disagreement emerged following an Axios report that Bessent asked Commerce Secretary Howard Lutnick in the White House Situation Room last week why he has resisted implementing export controls on Megaspeed.
Axios reported that Lutnick has consistently blocked efforts to crack down on businesses suspected of diverting advanced artificial intelligence chips made by Nvidia to China. Commerce Department spokeswoman Kristen Eichamer stated on Wednesday that Bessent and Lutnick did not have such a conversation in the Situation Room.
When questioned on CNBC regarding the alleged meeting, Bessent stated that they do not repeat conversations that occur in the Situation Room. However, he confirmed that the Treasury, Defense, and State departments, along with the Office of the U.S. Trade Representative, all supported placing Megaspeed on the entity list for months.
Frustration Over Chip Leakage
Asked whether delays in potential export controls caused him frustration, Bessent stated that he feels frustrated because President Donald Trump clearly established that China should not receive any Nvidia chips more advanced than H100 models. He added that any chip leakage creates frustration because it harms prominent domestic companies in the artificial intelligence race and provides an advantage to China.
