US Treasury Secretary Bessent accuses Lutnick-led Commerce Department of inadequate oversight of Nvidia chip sales to Megaspeed

US Treasury Secretary Bessent publicly accused the Commerce Department led by Commerce Secretary Lutnick of failing to properly oversee high-end AI chip exports, and the Nvidia chip controversy has spread to Trump's cabinet. Bessent told CNBC that multiple departments had for months supported adding Megaspeed to the Entity List, but the pen-holding authority rests with the Commerce Department; Trump has made clear China should not obtain Nvidia chips above the H100. According to reports, the Commerce Department investigated Megaspeed on suspicion of smuggling Nvidia chips to China but delayed adding it to the list. Jensen Huang was removed as CEO after it emerged he had a relationship with a former Megaspeed executive accused of being a Chinese spy, and he and Lutnick have both been summoned to testify at a Senate Banking Committee hearing. Democratic lawmakers Neal and Wyden are launching an investigation, saying H200 chips can be imported from Taiwanese factories to the US for inspection and then sold to Chinese companies.