White House alarmed by Lunick not blacklisting Nvidia-linked firm

Treasury Secretary Scott Bessent challenged Commerce Secretary Howard Lutnick over his department’s reluctance to label Nvidia customer Megaspeed a possible national security threat in a Situation Room confrontation last week that illustrates the tension inside the Trump administration over Chinese access to Nvidia’s advanced chips, two people familiar with the matter told CNN.

Trump officials have long harbored concerns that Megaspeed has circumvented US law and funneled advanced chips into China — a prospect that Treasury staffers argued should land it on Commerce’s so-called entity list of China-connected companies that could pose national security risks. But the issue gathered newfound attention and importance in recent days when Nvidia CEO Jensen Huang admitted to an affair with a Megaspeed employee suspected of being a Chinese spy.

0:00 Lawmakers question Lutnick on Megaspeed and AI chips
1:18 Why some lawmakers consider Chinese company Megaspeed a national security risk
3:53 Calls for congressional testimony and investigations
5:00 Blumenthal on national security and potential conflicts
8:04 Scrutiny over donations and the Justice Department response

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