The scandal centers on Huang’s relationship with Alice Huang, a Chinese businesswoman linked to Singapore-based Megaspeed International, which purchased billions of dollars in Nvidia chips. The New York Times reported that US intelligence agencies suspect Alice Huang was recruited by China’s Ministry of State Security. Beijing has rejected the allegations as “baseless.”
Nvidia’s board said it had no reason to believe company secrets or national security were compromised, and paid tribute to Huang’s “profound” contributions. In an internal memo, Huang wrote: “I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry.”
The political fallout has centered on Lutnick, whose Commerce Department has been accused of delaying action against Megaspeed despite a classified intelligence memo circulated among senior administration officials. Treasury Secretary Scott Bessent told CNBC he had “for months” favored blacklisting the company, but noted that Lutnick’s department “has the pen.” John Curtis, a Republican senator, said the delay “raises the question of whether the Commerce Department is acting in the best interests of the American people.” Senator John Cornyn called for “a thorough investigation and accountability for the outrageous circumvention of national security export controls,” adding: “Heads should roll.”
White House officials are discussing whether Lutnick should be fired, according to the Associated Press, though the White House told the New York Post that Trump has “complete confidence” in him, describing him as “the most transformative commerce secretary in modern history.” Lutnick is scheduled to testify before Congress next month, days after Huang answers lawmakers’ questions. Kristen Eichamer, a spokesperson for Lutnick, told NBC News: “Secretary Lutnick has proactively agreed to appear voluntarily before the banking committee to address their questions.”
Senate Democratic leader Chuck Schumer questioned what Trump knew when he invited Huang aboard Air Force One for a state visit to Beijing earlier this year, adding: “Americans deserve to know that those at the highest levels of power are putting America first, not their bottom line or their personal friendships.” House Democratic leader Hakeem Jeffries demanded a classified briefing for all members of Congress.
Trump called Huang two days before his resignation and urged him to fight for his job, the New York Times reported. Speaking on Thursday, Trump suggested former Apple chief executive Tim Cook could take over Nvidia, writing: “A legend replaces a legend.”
Nvidia’s board appointed chief financial officer Colette Kress as interim CEO. She will continue as finance chief while the board searches for a permanent successor. The company had no publicly disclosed succession plan. Nvidia shares fell 2.5 percent on Friday, pushing its market value below $4 trillion, after a volatile week.
Lawmakers are pressing colleagues to pass bills on chip exports. House Speaker Mike Johnson said there was a “developing consensus in Congress” in favor of limiting China’s access to advanced chips. House Foreign Affairs Chair Brian Mast, a Republican, said congressional staff had spoken to Nvidia about arranging Huang’s testimony.