Veterans & National Security · Report · File No. 261111-279
Commerce paused Megaspeed chip probe after Nvidia contact, NYT reports
The Commerce Department stopped its Megaspeed investigation after Nvidia's top lawyer contacted agents, the New York Times reported. That is the backdrop to a reported clash between Treasury and Commerce over chip security.
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A story reported Wednesday says Treasury Secretary Scott Bessent confronted Commerce Secretary Howard Lutnick in the Situation Room over Megaspeed, a customer of the chip maker Nvidia. The report says Bessent was upset that Megaspeed was not on a list of firms that pose China security risks. The Gop Files could not load that report and has not independently confirmed the account. The facts below come from coverage we did read.
What the reporting shows
Megaspeed is a Singapore data center company that touts its Nvidia partnership 1. The Commerce Department's investigation into the company was moved to the Justice Department after a top Nvidia executive contacted Commerce officials 1.
According to the New York Times, as summarized by The Next Web, Nvidia's general counsel, Tim Teter, emailed Commerce investigators in August 2025. The agents declined a meeting and forwarded the emails to a senior Commerce official, Jeff Kessler 2. The Justice Department is reported to be running a criminal inquiry 2. The Next Web said it had not verified that detail 2.
Megaspeed denies smuggling chips and says it is running its own investigation 2. Nvidia's spokesman said the company contacts officials to "provide information we have gathered from the field" 2. No charges have been reported in the coverage we read.
From Channel GOPPresident cozying with China and Russia, insulting alliesAndy Beshear · 152 plays · captioned, with the source named
The spy question
The scrutiny grew after Nvidia CEO Jensen Huang admitted an intimate relationship with Alice Huang, a former Megaspeed executive. U.S. officials reportedly believe she gathered information for Beijing 12. The two are not related 2. China's government calls the spy claim unsubstantiated 1.
Nvidia's board opened an independent investigation and said it saw no reason to believe national security secrets were compromised 3. Lutnick reportedly received a classified memo on the relationship before Commerce approved chip sales tied to China 3. Commerce did not comment on that report 3. Top House Foreign Affairs Democrats have pressed Lutnick to explain the administration's chip approvals 3.
President Trump has defended Huang. He called him "a very honorable man" 1. House committee chairs have asked Huang to attend a closed-door briefing on November 18 2.
The warning from a Republican
Concerns about Megaspeed are not new. In October 2025, Sen. Tom Cotton, an Arkansas Republican, wrote to Lutnick about the company. He said billions of dollars of U.S. chips had flowed to it and wrote, "I respectfully request the Commerce Department investigate Megaspeed" 4.
I respectfully request the Commerce Department investigate Megaspeed
A Commerce spokesman told the Times the department handled this and other cases strictly by the book. The Times also reported that other agencies proposed adding Megaspeed to the Entity List, Commerce's trade blacklist, and that Commerce has not done so.
That matters because the Entity List is a main tool for keeping advanced American chips out of Chinese military and spy programs. If the account of a Bessent-Lutnick clash holds up, it would suggest officials inside the administration disagree about how hard to enforce those limits. That is analysis, not a confirmed finding.
Next up is the November 18 House briefing, if Huang agrees to attend 2. Democrats take control of the House in January and have said they plan oversight of the administration.
The Record
- Sen. Tom Cotton's office announced a letter asking Lutnick to investigate Megaspeed 4.
- Nvidia announced an independent investigation after Huang admitted the relationship 1.
- Trump called Huang "a very honorable man"; reports said the Megaspeed probe moved to the Justice Department after Nvidia's outreach 12.
- House chairs asked Huang to attend a closed-door briefing 2.
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Sources
- The Philadelphia Inquirer, “Commerce Department chip inquiry was halted after Nvidia intervention” (2026-11-09). inquirer.com/news/nation-world/nvidia-investigation-commerce
- The Next Web, “Commerce halted its Megaspeed probe after Nvidia stepped in, NYT reports” (2026-11-09). thenextweb.com/news/megaspeed-probe-commerce-nvidia-lawyer-j
- Raw Story, “Howard Lutnick in hot seat over secret warning on Nvidia CEO's suspected spy lover” (2026-11-10). rawstory.com/howard-lutnick-jensen-huang/
- Sen. Tom Cotton's office, “Cotton to Lutnick: Investigate Chinese Government Spin-off Megaspeed for Skirting U.S. Export Laws” (2025-10-14). cotton.senate.gov/news/press-releases/cotton-to-lutnick-inve
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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