By Our Correspondent
US Commerce Secretary Howard Lutnick is facing mounting pressure over his alleged failure to act on intelligence warnings linked to an espionage scandal involving Nvidia, with officials in the Trump administration reportedly considering whether he should be removed from office.
The controversy centres on allegations surrounding Nvidia chief executive Jensen Huang, who reportedly resigned from the company following revelations about his alleged relationships with multiple women, including Alice Huang, a woman suspected of having links to Chinese intelligence.
Nvidia’s Chief Financial Officer, Colette Kress, has reportedly taken over as interim chief executive.
Pressure on Lutnick intensified after reports emerged that a US intelligence assessment detailing Jensen Huang’s alleged relationship with Alice Huang had been circulated among senior officials in President Donald Trump’s administration.
The Commerce Secretary is also expected to appear before Congress alongside the former Nvidia chief in the coming weeks to address questions surrounding the controversy.
Lutnick has particularly come under scrutiny over the Commerce Department’s reported delay in placing Singapore-based Megaspeed on Washington’s national security blacklist.
Megaspeed, which is allegedly associated with Alice Huang, has reportedly purchased billions of dollars’ worth of Nvidia chips in recent years, raising concerns within the US administration over possible circumvention of export controls.
The Associated Press reported that White House officials were discussing whether Lutnick should be dismissed over his handling of the matter.
Republican Senator John Curtis of Utah questioned the Commerce Department’s reported delay in imposing restrictions on Megaspeed, saying it raised concerns about whether the department was prioritising the interests of the American people.
“There needs to be a thorough investigation and accountability for the outrageous circumvention of national security export controls. Heads should roll,” Republican Senator John Cornyn told the Financial Times.
Senate Democratic Leader Chuck Schumer also demanded explanations from Nvidia and its former chief executive over whether US national security had been compromised.
He said the Trump administration must account for its actions after receiving intelligence about Huang’s alleged relationship with Alice Huang.
A spokesperson for Lutnick, Kristen Eichamer, said the Commerce Secretary had agreed to appear voluntarily before the Senate Banking Committee to address lawmakers’ concerns.
Meanwhile, Trump’s close relationship with Jensen Huang has also come under renewed scrutiny as details of the controversy continue to emerge.
The New York Times reported that Trump spoke with Huang two days before his departure from Nvidia, urging him to fight to retain his position.
Schumer questioned what the president knew when he personally invited Huang aboard Air Force One during a state visit to Beijing earlier this year.
“Americans deserve to know that those at the highest levels of power are putting America first, not their bottom line or their personal friendships,” he said.
House Democratic Leader Hakeem Jeffries also disclosed that he had requested a classified briefing for all members of Congress on the Nvidia controversy.
Similarly, Republican Senator Tim Scott, chairman of the Senate Banking Committee, said he had written to Lutnick and Huang, asking them to appear before the panel.
Scott said recent reports had raised serious concerns about US national security and the protection of sensitive American technology.
Meanwhile, Nvidia’s board of directors, in its statement confirming Huang’s departure, did not address the espionage allegations or reports about his personal relationships. Instead, it praised his significant contributions to the company he co-founded.
The New York Times reported that Huang allegedly had relationships with Alice Huang and Nvidia executive Kimberly Powell, while Reuters reported allegations involving another unnamed employee.
Chairman of the House Foreign Affairs Committee, Republican Brian Mast, said congressional staff had spoken with Nvidia representatives on Wednesday night to discuss arrangements for Huang’s testimony.
House Speaker Mike Johnson also disclosed that lawmakers were increasingly reaching a consensus on restricting the export of advanced semiconductor technology to China.
He said limiting Beijing’s access to sophisticated chips was becoming an important priority in Washington.
Nvidia’s advanced artificial intelligence chips are central to the development of sophisticated AI models, making the company a critical player in the technological competition between the United States and China.
Washington has maintained restrictions on the export of Nvidia’s most advanced chips to China over concerns that the technology could strengthen the Chinese military and its artificial intelligence capabilities.
Johnson said the issue had remained a major concern among lawmakers, adding that there was growing agreement on the need to maintain restrictions.
Meanwhile, Chinese artificial intelligence companies are reportedly seeking to secure supplies of Nvidia chips through channels outside China amid concerns that Washington could tighten enforcement of its export controls following the scandal.
People familiar with the matter told Reuters that the controversy could close existing gaps in the US restrictions.
Beijing has also intensified efforts to develop domestic alternatives to advanced Nvidia processors, particularly through technology companies such as Huawei.
However, analysts say Chinese-made chips remain less efficient for training sophisticated AI models.
In China, news of Huang’s reported resignation generated widespread reactions on social media, with many users expressing surprise and lamenting what they described as the sudden end of an era spanning more than three decades.
The development reportedly attracted more than 400 million posts overnight on Chinese microblogging platform Weibo.
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