Tag: nvidia spy scandal
huang and lutnick

Huang Resigns Amid Nvidia Spy Scandal, But What About Lutnick -- And Trump?

I’ve been saying that the Nvidia scandal could finally push Republicans to abandon President Donald Trump—and supply the votes to impeach and convict him.

The first GOP rumblings have emerged.

To recap, Trump was warned that Nvidia CEO Jensen Huang was having an affair with a suspected Chinese spy whose company, Megaspeed, was under investigation by the Commerce Department for allegedly funneling restricted AI chips to China. Nvidia pledged $25 million to Trump’s ballroom. Commerce Secretary Howard Lutnick then resisted action against Megaspeed, and, after Nvidia intervened with Commerce officials, the Justice Department instructed the department’s investigators to pause their work.

Then, on the way to China in May, Secretary of State Marco Rubio reminded Trump of the intelligence about Huang’s relationship. Trump brought him anyway—and Huang joined part of the summit with Xi Jinping, on a trip where access to advanced American AI chips was a major issue. Trump knew about the suspected Chinese intelligence operation and still brought its potential target into meetings with China’s leadership over the very technology Beijing wanted.

Huang resigned Thursday amid the fallout.

So did Nvidia buy protection while Trump brushed aside warnings that his close ally posed a national security risk?

It sure looks that way.

Republicans have spent years obsessing over the Chinese Communist Party. I’ve wondered whether they would abandon those concerns at Trump’s behest, just as they’ve done with Vladimir Putin and Russia, or muster some actual outrage.

We’re seeing the first signs of the latter, with attention focused on Commerce Secretary Howard Lutnick.

“The obvious question is why did [Lutnick] choose to sell advanced chips?” GOP Sen. John Kennedy of Louisiana told Politico Wednesday, implying that Lutnick wilfully looked the other way while he knew that Nvidia chips were being illegally funneled to China.

He continued, “Secretary Lutnick needs to answer that in front of God and country. If I were he, I’d call a press conference this afternoon and explain what happened and why he agreed to sell them chips, and I would stop doing it.”

Meanwhile, on CNBC Wednesday, GOP Sen. Kevin Cramer of North Dakota demanded Huang’s resignation.

“I can’t believe we are even considering him not resigning,” he said. “It’s like my God, this is a guy that’s right now so vulnerable to extortion, blackmail. I just don’t think, as a national security matter, we can run the risk.”

Wait until Cramer follows that reasoning all the way to Trump.

Republicans are starting to stir on the House side as well.

“I’d say we want to get to the bottom of the matter and to really have transparency on this,” Rep. John Moolenaar of Michigan, chair of the House Select Committee on the Chinese Communist Party, told Politico.

That’s a committee that Democrats should keep busy when they take control.

Moolenaar and the Republican chairs of the House Intelligence and Foreign Affairs committees wrote to Huang on November 4, requesting that he appear for a joint, closed-door briefing on November18. They want answers about Nvidia’s protections against foreign espionage and Huang’s affair with Megaspeed executive Alice Huang.

So congressional scrutiny may begin even before Democrats even take over.

For now, Republicans are focused on Huang and Lutnick, who should follow the former Nvidia CEO’s lead and resign. But they haven’t shown the same appetite for examining Trump’s role.

These are just the opening moves in what could become the defining scandal of Trump’s presidency. Once Republicans start asking who knew what, when they knew it, and why nothing was done, every road leads to the White House.

Democrats, meanwhile, are preparing to take the majority and calling for the preservation of records.

“Reports suggest that officials within the government—including at the White House, State Department, and Commerce Department—were aware of concerns about NVIDIA, its relationship with Megaspeed, and the suspected Chinese intelligence operation, yet did not move to block the continued flow of advanced AI chips to Megaspeed or other companies affiliated with the suspected operative,” Sens. Elizabeth Warren of Massachusetts and Chris Coons of Delaware wrote in a joint statement. “Questions also remain regarding whether or not prudent defensive counter-intelligence action was taken or national security recommendations were overruled.”

Here’s the current timeline:

  • 2024: U.S. authorities begin investigating Megaspeed over diverting sanctioned Nvidia chips to China. Surveillance of its CEO Alice Huang uncovers her relationship with Jensen Huang.
  • August 2025: Nvidia’s general counsel contacts Commerce investigators, inappropriately invoking the name of Trump appointee Jeff Kessler, who reports to Lutnick. This appears to have been an effort to chill the investigation.
  • October 2025: Trump is briefed on the relationship and the intelligence assessment that Alice Huang is a Chinese spy.
  • Also October 2025: Nvidia commits $25 million to Trump’s ballroom and requests anonymity.
  • Late 2025: The DOJ takes over the Megaspeed case, asking Commerce to pause its work. This seemingly kills the investigation.
  • Spring 2026: Secretary of State Marco Rubio issues a classified warning about Jensen Huang’s relationship with Alice Huang, raising the alarm once again. He is ignored.
  • May 2026: Trump invites Jensen Huang to join his trip to China after he was initially absent from the delegation, having him join mid-trip during a refueling stop in Alaska.
  • Nov. 12: Jensen Huang resigns as Nvidia CEO
Huang is out. But the questions about Trump are just beginning.
Markos Moulitsas is founder and editor of the blogging website Daily Kos and author of three books.

Reprinted with permission from Daily Kos. Please consider subscribing or donating to Daily Kos here.

Jensen Huang

Damning Timeline Of Nvidia Spy Scandal Could Spur New Trump Impeachment

The Wall Street Journal reports that Nvidia’s board of directors plans to oust CEO Jensen Huang after discovering that he didn’t just have an affair with a suspected Chinese spy, but also with an employee.

As I wrote yesterday, this scandal may very well be seeds for a legitimate impeachment effort against President Donald Trump—one that could get the necessary Republican support for conviction.

The timeline is extremely damning for Trump, who didn’t just ignore the intelligence warnings but seemingly squelched a Commerce Department investigation into efforts to illegally sell AI chips to China.

It looks like this:

  • 2024: U.S. authorities begin investigating Singapore-based data center company Megaspeed over diverting sanctioned Nvidia chips to China. Surveillance of its CEO Alice Huang uncovers her relationship with Jensen Huang.
  • August 2025: Nvidia’s general counsel contacts Commerce investigators, inappropriately invoking the name of Trump appointee Jeff Kessler, who reports to Commerce Secretary Howard Lutnick.
  • October 2025: Trump is briefed on the relationship and the intelligence assessment that Alice Huang is a Chinese spy.
  • Also October 2025: Nvidia commits $25 million to Trump’s ballroom and requests anonymity.
  • Late 2025: The Justice Department takes over the Megaspeed case, asking Commerce to pause its work. This seemingly kills the investigation.
  • Spring 2026: Secretary of State Marco Rubio issues a classified warning about Jensen Huang’s relationship with Alice Huang, raising the alarm once again. He is ignored.
  • May 2026: Trump invites Jensen Huang to join his trip to China after he was initially absent from the delegation, having him join mid-trip during a refueling stop in Alaska.

There are many threads here for the incoming Democratic Congress to investigate, but by all current indications, Trump didn’t just look the other way as his intelligence agencies sounded the alarm—he solicited a $25 million bribe to take the case out of Commerce’s hands and into a dark void at the DOJ.

Then, Trump invited his pal on his plane and inside sensitive communications knowing full well that Huang was—still, at the time—having an affair with a Chinese spy.

Let’s see how Republicans, who love to get hysterical about Chinese communists, react to all of this.

Markos Moulitsas is founder and editor of the blogging website Daily Kos and author of three books.

Reprinted with permission from Daily Kos. Please consider subscribing or donating to Daily Kos here.


Trump and Jensen Huang

Having An Affair With A Chinese Spy Was Not Super-Intelligent, Mr. Huang

I really don’t like to get into other people’s personal lives. I consider it a matter between the people involved, assuming that they are consenting adults, and none of my business. But damn, everything about this story of Nvidia CEO Jensen Huang and the alleged Chinese spy, Alice Huang, is a bit hard to believe.

Just to orient anyone who has been living under a rock for the last few years, Nvidia is at the very center of the AI boom. Its top-line chips provide the computing power for the frontier models being developed by Anthropic and OpenAI. For this reason, it has been prohibited from selling the top-line chips to China and restricted in the volume of lower-grade chips that they could sell. This was a policy initially put in place by Biden and continued under Trump. The idea was to maintain the United States’ advantage in developing frontier AI models.

At its peak, last month, Nvidia’s market cap almost reached $6 trillion. In an industry where people like Elon Musk, Sam Altman, and Mark Zuckerberg are the heavyweights, Huang seemed like the adult in the room.

Well, it seems that the adult in the room was selling chips to Chinese businesses that were shell companies acting as fronts for sanctioned companies. The extent to which Ms. Huang was involved in these decisions is not entirely clear at this point, but in any case, these sales make a mockery of the efforts to limit exports of Nvidia chips. If sanctioned companies can get access to chips simply by using a front company, the export prohibitions don’t mean much.

According to the New York Times, which broke the story, Trump had been warned at least twice about Jensen Huang’s relationship with a woman who could have ties to Chinese intelligence agencies. Trump apparently ignored these warnings. (Trump has denied he ever got these warnings, but of course he would.)

We might expect the FBI to be on top of something like this. After all, monitoring efforts by foreign intelligence agencies to gain access to technology that could have military uses, which is true of advanced AI, is one of the areas where the FBI is supposed to be involved.

But the current director, Kash Patel, fired many of the agents with experience in the area, and others opted to leave rather than deal with the Trump administration. Instead of worrying about protecting cutting-edge technology from potential adversaries, Patel had the FBI focused on investigating James Comey and copycats posting “86 47.”

To be clear, I am less scared of China getting some Nvidia chips than others might be, but I do think this failure to enforce sanctions speaks volumes about the efforts to control a potentially dangerous technology. There is little question that misprogrammed AI, or maliciously employed AI, can do enormous damage. We need to count on the people in the industry and/or government agencies to protect us against these risks.

This latest episode doesn’t give us much reason to believe they are up to the task. For what it's worth, Nvidia’s stock has fallen roughly 18 percent since this affair came to light, eliminating almost $1 trillion in market value.

Dean Baker is a senior economist at the Center for Economic and Policy Research and the author of the 2016 book Rigged: How Globalization and the Rules of the Modern Economy Were Structured to Make the Rich Richer. Please consider subscribing to his Substack, from which this is reprinted with permission.

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