Treasury Secretary Bessent Criticizes Commerce Department Over Nvidia Chip Exports

US Treasury Secretary Scott Bessent has publicly pointed to the Commerce Department, led by Howard Lutnick, for failing to adequately restrict the export of high-specification Nvidia processors. The scrutiny follows mounting fallout surrounding Megaspeed, a cloud computing firm that purchased advanced hardware from Nvidia before facing governmental investigations regarding potential smuggling into China.

Speaking in a media interview, Bessent expressed frustration over bureaucratic delays that prevented Megaspeed from being added to the government's restricted entity list, noting that multiple agencies supported the move for months. He emphasized that President Trump established clear directives preventing China from acquiring Nvidia chips superior to the H100 model, warning that any supply leakage undermines domestic competitors in the global artificial intelligence sector.

In addition to questioning inter-agency oversight, Bessent directed criticism toward Nvidia itself. He raised concerns regarding whether the chipmaker exercised proper due diligence to vet its clients and prevent products from flowing to pass-through shell companies, asserting that corporate accountability is necessary.

What to watch next: Potential updates regarding export control enforcement and whether additional restrictions will be placed on semiconductor shipments to overseas entities.