Politics · United States · 4 hrs ago
Bessent blames Commerce Department for failing to blacklist Megaspeed
Treasury Secretary Scott Bessent blamed the Commerce Department for the US government’s failure to put Megaspeed on a trade blacklist.
He said the Treasury, Defense and State departments and the US trade representative had supported the move for months, but Commerce controls the blacklist decision.
Megaspeed is a Singapore-based data center firm that has faced government scrutiny over suspicions it helped send advanced Nvidia chips to China.
It has not been added to the list, which bars US companies from doing business with listed firms.
Bessent also questioned Nvidia’s checks on its customers and said company employees should be held accountable if they helped evade the law.
He said China should not receive Nvidia chips above the H100 level, and that chip leakage could give China an AI advantage.
The dispute is unfolding as Nvidia co-founder Jensen Huang has left the company after revelations of an affair with a former Megaspeed executive.
Scott Bessent blamed Howard Lutnick’s Commerce Department for failing to put Singaporean data center firm Megaspeed on a US trade blacklist.
Bessent said the Treasury, Defense and State departments and the US trade representative had supported listing Megaspeed for months.
The Commerce Department has authority over the list, and Bessent said it “has the pen.”
US agencies had investigated Megaspeed over suspicions it was smuggling advanced Nvidia chips into China.
Bessent also questioned whether Nvidia had taken adequate steps to prevent chips from reaching China through pass-through companies.
CNN reported growing concern inside the White House over Lutnick’s handling of the firm.
- Who
- Treasury Secretary Scott Bessent blamed Commerce Secretary Howard Lutnick’s department. CNN reported growing White House concern over Lutnick’s handling of the case.
- What
- The Commerce Department is facing criticism for not putting Megaspeed on the US entity list. CNN’s headline says Lutnick faces a probe over the handling of the firm.
- When
- Bessent made his comments on Friday, Nov. 13, 2026. CNN reported on the concern on Nov. 13.
- Where
- The dispute concerns the US Commerce Department and the US entity list. Megaspeed is described as a Singaporean firm.
- Why
- US agencies suspected Megaspeed of smuggling advanced Nvidia chips into China. Bessent also questioned whether Nvidia took steps to prevent chip leakage.
This story does not have two clearly opposing sides.
The Commerce Department was investigating Megaspeed over suspicions it had smuggled some advanced Nvidia AI chips into China.
Bessent said several government agencies supported adding Megaspeed to the entity list.
Jensen Huang resigned from Nvidia after revelations about his relationship with a former Megaspeed executive and another affair.
Bessent criticized the Commerce Department’s failure to sanction Megaspeed and questioned Nvidia’s safeguards.
- Company
- Megaspeed, a Singaporean data center firm
- Commerce secretary
- Howard Lutnick
- Treasury secretary
- Scott Bessent
- Trade list
- US entity list
- Chip restriction cited by Bessent
- China should not receive Nvidia chips above H100s
- Investigation
- Commerce examined Megaspeed last year over suspected chip smuggling into China
6 sources
Bessent blames US Commerce Department for not restricting Nvidia chip exports to China
Bessent Faults Commerce Dept. for Failing to Blacklist Megaspeed
U.S. Treasury Secretary frustrated by Commerce Department's inaction on Nvidia chips
Bessent blames Lutnick's Commerce Department for failing to block Megaspeed
Bessent blames Lutnick’s commerce department for failure to blacklist Megaspeed
Lutnick faces probe over handling of firm at center of Nvidia scandal
What people are saying
Treasury and my deputy has been pushing for this for months at the deputies level.
But Commerce has the pen... and you will have to ask them about their internal process,
President Trump made it very clear that China should not receive any Nvidia chips above H100s, so any leakage is very frustrating because it hurts our great companies in the AI race, because it gives the Chinese an advantage,
I think it’s important that anyone at the company there be held accountable for that.