Bessent Confronts Lutnick Over Megaspeed Nvidia Chips in Situation Room

Washington — Treasury Secretary Scott Bessent confronted Commerce Secretary Howard Lutnick inside the White House Situation Room last week, demanding to know why Nvidia customer Megaspeed has still not been placed on the Commerce Department’s entity list, according to people familiar with the meeting. The tense exchange, first reported by Axios and confirmed by CNN, exposed a growing split inside President Donald Trump’s cabinet over a Singapore-based company that American officials accuse of funnelling advanced Nvidia chips into China.

Key Points

• Bessent challenged Lutnick in a Situation Room meeting on Thursday, November 5, asking: “How come Megaspeed isn’t on the entities list?” Lutnick replied: “I don’t know. I’ll look into it.”
• Treasury staffers argue Megaspeed, accused of circumventing US law to move advanced Nvidia chips to China, belongs on the entity list, which bars American firms from selling sensitive technology without a licence.
• Commerce has not added any company to the entity list in more than a year; the last addition was October 9, 2025.
• Lutnick was briefed months ago on Nvidia chief Jensen Huang’s affair with Megaspeed executive Alice Huang, whom US intelligence suspects of being a Chinese spy; he received a classified Rubio-overseen memo in May 2026.
• Megaspeed, once a Chinese video-game developer, has bought more than $4 billion worth of Nvidia chips by some estimates; the company denies wrongdoing.

What Happened

The confrontation took place on Thursday, November 5, 2026, two days after the midterm elections, in a White House Situation Room meeting attended by senior administration officials. According to two people familiar with the matter who spoke to CNN, Bessent pressed Lutnick directly on Commerce’s reluctance to label Megaspeed a possible national security threat. Axios first reported the confrontation.

Bessent asked: “How come Megaspeed isn’t on the entities list?” Lutnick, after stammering, replied: “I don’t know. I’ll look into it.” He made no commitment to act. Treasury staffers argued Megaspeed belongs on the list, the Commerce blacklist that bars US companies from selling sensitive technology to a named firm without a licence.

The exchange did not come out of nowhere. White House and intelligence officials have pressed Lutnick and his advisers to act on Megaspeed since the fall of 2025, and Commerce Undersecretary Jeff Kessler was repeatedly warned about the company in deputy-level meetings.

Megaspeed, Nvidia and the China Chip Pipeline

Megaspeed is a Singapore-based firm originally incorporated in 2015 as the Chinese video-game developer 7Road International. In recent years it has become one of the largest buyers of Nvidia chips in Asia, purchasing more than $4 billion worth by some analyst estimates. US officials accuse the company of funnelling advanced Nvidia chips into China, where the most powerful AI processors are barred under export controls.

The allegations sit at the centre of a widening scandal around Nvidia and its chief executive, Jensen Huang. US intelligence suspects Alice Huang, a Megaspeed executive, of being a Chinese spy, and a memo prepared by US officials earlier this year said Huang was romantically involved with her. Lutnick was among the senior officials briefed months ago on that affair, and he received a highly classified memo on the matter, overseen by Rubio, in May 2026.

The affair has already drawn in Congress, the FBI and Nvidia’s own board. Three House Republican chairs have asked Huang to brief Congress behind closed doors on November 18, Nvidia’s board has opened its own inquiry, and shareholders have sued. A separate report has linked the case to $75 billion worth of Nvidia chips shipped to China.

Reactions and Quotes

The sharpest words in the room were Bessent’s own. “How come Megaspeed isn’t on the entities list?” he asked, according to the people familiar with the meeting. Lutnick’s reply — “I don’t know. I’ll look into it” — offered no timeline and no promise of action.

Megaspeed denies wrongdoing, calling itself a “compliant and legal company”. China has called the spy claims “groundless speculation”. The Treasury and Commerce departments did not immediately respond to requests for comment on the confrontation.

Why It Matters

The entity list is the US government’s main tool for cutting a foreign company off from American technology. Once a firm is listed, American companies need a licence to sell it anything sensitive — routinely denied. Not adding a company is therefore a decision in itself, and Commerce has now gone more than a year without making one.

That matters because the chips at issue are not ordinary electronics. Advanced Nvidia processors are the building blocks of modern artificial intelligence, and Washington has spent years tightening the rules to keep the most powerful versions out of China. If a major buyer can keep acquiring them through intermediaries while the government debates, the controls lose their force, and the debate inside the cabinet becomes a national security question in its own right.

It also matters politically. The clash came two days after the midterms, at a moment when the administration is under pressure to show its tough talk on China is matched by action, and Congress already has Huang scheduled to testify behind closed doors on November 18.

What Happens Next

Lutnick said he would look into the matter, but he made no commitment and set no deadline. The next test is whether Commerce moves to add Megaspeed to the entity list, or whether the year-long pause in additions continues. Treasury staffers are expected to keep pressing, and the White House and intelligence officials who have raised the company since last fall are unlikely to drop it.

Congress will also be watching. The November 18 briefing with Huang is now likely to include questions about Megaspeed and why Commerce has held back. Until Commerce acts, Megaspeed remains free to buy Nvidia chips, and the question Bessent asked remains unanswered.

Frequently Asked Questions

What is the entity list?
It is the Commerce Department’s blacklist. Once listed, US firms need a government licence to sell a company sensitive technology, and those licences are usually denied.

What is Megaspeed accused of?
US officials accuse the Singapore-based firm of circumventing American law and funnelling advanced Nvidia chips into China. Megaspeed denies wrongdoing.

Who is Alice Huang?
A Megaspeed executive whom US intelligence suspects of being a Chinese spy. A US memo said Nvidia chief Jensen Huang was romantically involved with her, and Lutnick was briefed on the affair months ago.

Why hasn’t Commerce listed Megaspeed?
Commerce has not explained its reluctance. It has not added any company to the entity list in more than a year, and Lutnick offered no reason in the meeting beyond saying he would look into it.

What happens next?
Attention turns to whether Commerce acts on Megaspeed, and to Jensen Huang’s closed-door congressional briefing on November 18, where lawmakers are expected to press the issue.

Related coverage: Nvidia CEO Jensen Huang asked to brief Congress on Nov. 18 over China spy claims; US memo says Nvidia CEO Jensen Huang had romantic ties to alleged China spy; Trump does not recall Rubio memo on Huang affair with alleged China spy.