Bessent blames Lutnick’s Commerce Department for failing to block Megaspeed

Scott Bessent has accused the US Commerce Department of failing to act quickly enough to restrict Megaspeed’s access to advanced Nvidia chips, as scrutiny of the company’s suspected exports to China grows. The dispute matters because US officials say such chip transfers could give China an advantage in artificial intelligence, while exposing weaknesses in export controls.

Bessent said several agencies had supported adding Megaspeed to the export control list for months, but that Commerce Secretary Howard Lutnick’s department controls the process. Reports said Megaspeed was investigated last year over suspected chip smuggling, yet was not on the list barring US firms from doing business with it. Bessent also questioned whether Nvidia adequately checked its customer and prevented chips reaching shell companies; Nvidia co-founder Jensen Huang has separately left the company amid revelations of an affair with a former Megaspeed executive.