Corruption & Accountability · Report · File No. 261114-639
Blumenthal says Lutnick 'must go' over stalled Nvidia chip blacklist for Megaspeed
Sen. Richard Blumenthal is the first Democrat to demand that Commerce Secretary Howard Lutnick leave, after reports that Commerce stalled action on Nvidia partner Megaspeed. Republicans are raising questions too, and Reuters says White House officials are discussing whether to push him out.
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Sen. Richard Blumenthal, a Connecticut Democrat, said Friday that Commerce Secretary Howard Lutnick should leave his job. "Lutnick must go." 1 It is the first Democratic resignation demand in the Nvidia scandal, based on the coverage we reviewed.
Lutnick must go.
The demand follows reports this week that Lutnick stalled President Donald Trump's crackdown on companies suspected of diverting Nvidia computer chips to China. 1 Those are media reports, and Lutnick has not been charged with anything.
What the dispute is about
Megaspeed is a Singapore-based company. Treasury Secretary Scott Bessent said Friday that four agencies had favored adding it to the Commerce Department's "entity list" for months. The list is a trade blacklist of groups tied to China that U.S. officials say pose national security risks. 1
The four agencies were Treasury, the Pentagon, the State Department and the U.S. Trade Representative's office. 1 Bessent told CNBC that Commerce decides. 1
From Channel GOPBlumenthal refuses to back down to Trump DOJSen. Richard Blumenthal · 359 plays · captioned, with the source named
But Commerce has the pen,
Megaspeed drew attention after reports that Nvidia CEO Jensen Huang had an affair with a former Megaspeed executive, Alice Huang. U.S. authorities suspect her of being a Chinese spy. 1 Huang has since left as Nvidia's chief executive. 1
One report, from Axios, said Bessent asked Lutnick in a White House meeting why Megaspeed was not on the list. Commerce spokesperson Kristen Eichamer denied it, saying, "This is false. Secretary Bessent and Secretary Lutnick had no such conversation." 2
Other reports say Lutnick received an intelligence memo in May that raised concerns about Megaspeed. They also say he resisted action over fears of escalating the trade war with China. 2 Commerce declined to discuss its internal deliberations. 2 Many of these claims rest on anonymous sources and are disputed. 2
Republicans are asking questions too
Sen. John Curtis, a Republican, said Friday that Lutnick's reported stalling raises the question of whether the Commerce Department is acting in the best interests of the American people. 1 Senate Banking Committee Chair Tim Scott asked Lutnick on Thursday to testify. 1
Also on Thursday, Reuters reported that senior White House officials were discussing whether Lutnick should be pushed out. 1 Commerce did not immediately respond to Reuters' request for comment. 1
What happens next
Republican chairs of three House committees have asked Huang to join a closed-door briefing on Nov. 18, which could lead to an investigation. 2 Nvidia says it put Megaspeed on its own block list in June 2025. 2
Bessent said the administration is working to stop "leakage" in the chip export system. He added that Congress does not need to act, because the government already has the authority it needs. 1
That matters because the question is no longer only partisan. The pattern is a Cabinet secretary facing doubts from a fellow Cabinet member, a Republican senator and, reportedly, the White House. Democrats are expected to gain oversight power once the new Congress takes over, though no hearing on this has been announced.
The Record
- Lutnick reportedly received an intelligence memo outlining Megaspeed concerns; the month is reported, not the exact day 2.
- Reuters reported that senior White House officials were discussing whether Lutnick should be pushed out; Sen. Tim Scott asked him to testify 1.
- Bessent said four agencies favored blacklisting Megaspeed; Blumenthal said Lutnick must go 1.
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Sources
- Reuters (via AsiaOne), “Bessent blames Commerce Dept over lack of export controls for Nvidia partner Megaspeed” (2026-11-14). asiaone.com/world/bessent-blames-commerce-dept-over-lack-exp
- Magica, “Commerce Denies Bessent-Lutnick Clash as Megaspeed Blacklist Delay Draws Scrutiny” (2026-11-11). magica.com/news/bessent-lutnick-megaspeed-export-blacklist-d
Found an error? Tell the newsroom. Corrections are noted at the top of the story.
More from the files
Bessent says Treasury wanted Megaspeed blacklisted, but 'Commerce has the pen'
Treasury Secretary Scott Bessent publicly blamed Commerce Secretary Howard Lutnick for leaving a suspected chip-diversion firm off the U.S. trade blacklist. The dispute lands as Congress prepares to question both Nvidia and the administration.
Lutnick stalled Trump-approved Nvidia chip crackdown for third time, Axios reports
Axios reports Commerce Secretary Howard Lutnick again held up a crackdown on companies suspected of diverting Nvidia chips to China, even after President Trump approved it. Commerce had not commented in the coverage we reviewed.
Lutnick agrees to testify on Nvidia as Republicans and Democrats press for answers
Commerce Secretary Howard Lutnick will appear before the Senate Banking Committee after Nvidia CEO Jensen Huang resigned over reports of an affair with a suspected Chinese spy. Lawmakers in both parties want to know whether chip export controls were loosened.
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