The controversy surrounding former Nvidia CEO Jensen Huang's affair with a suspected Chinese intelligence asset continues to escalate and might end up claiming an aide of US President Donald Trump. Commerce Secretary Howard Lutnick is now fighting to retain his job, with senior US officials and White House aides criticising his longstanding ties with Huang and his resistance to the administration's efforts to restrict the sale of Nvidia-made chips to Chinese buyers.

Lutnick is hardly a stranger to controversy. He has previously faced bruising criticism, particularly over his documented association with disgraced financier and convicted sex offender Jeffrey Epstein. He is now facing mounting scrutiny over his handling of Nvidia's China-related business, with the criticism extending beyond Democrats to Republicans in Congress.

This comes as Huang, who headed one of the world's most valuable companies, stepped down as Nvidia's CEO and board on Thursday, sending shock waves through Silicon Valley. This comes after he had admitted to having affairs with Alice Huang, a former Megaspeed executive suspected of being a Chinese intelligence asset, and Kimberly Powell, another Nvidia executive. Huang has also been accused of having an intimate relationship with yet another employee at the company, bringing to light a third reported affair of the Nvidia ex-CEO.

WHY IS LUTNICK IN THE FIRING LINE IN NVIDIA CASE?

According to a report in The Wall Street Journal, US Secretary of Commerce Howard Lutnick has become a target of growing frustration within the Trump administration over his less than stellar handling of concerns surrounding Nvdia's advanced AI chips reaching Chinese buyers.

According to the report, officials in the administration have accused Lutnick of stalling efforts to restrict chip exports and failing to act against companies diverting American-made semiconductors and chipsets to China. Not helping matters is his ties with Jensen Huang.

The newspaper further reported that some of US President Donald Trump's allies and advisors have raised the possibility of removing Lutnick from the commerce department amid growing criticism.

Axios meanwhile reported that US Treasury Secretary Scot Bessant as having directly confronted Lutnick during a recent Oval Office meeting over the latter's failure to put Singapore-based data centre company Megaspeed International on the government's Entity List, which restricts companies considered posing national security or foreign policy risks from accessing American technology.

THE MEGASPEED CONNECTION THAT COULD COST LUTNICK HIS JOB

At the centre of the controversy is Megaspeed International, a Singapore-based company that became one of Nvidia's major customers for advanced AI chips.

Its former executive, Alice Huang, is suspected by American intelligence officials of being associated with Chinese intelligence, according to The New York Times. She was among the two women involved in an affair with the former Nvidia chief, raising questions about whether sensitive corporate or national security information could have been compromised.

The US government has been examining whether Megaspeed illegally diverted Nvidia's advanced processors to Chinese entities in violation of American export restrictions.

According to CBS News, the Commerce Department's Bureau of Industry and Security launched an investigation into Nvidia's chip sales to Megaspeed in 2024, during the Biden administration, to determine whether the processors were being redirected to China.

However, the investigation was subsequently transferred to the Justice Department. The New York Times separately reported that a Commerce Department investigation into Megaspeed was abruptly halted last year after Nvidia intervened.

The handling of the investigation has become a major source of criticism directed at Lutnick and his subordinates, particularly Jeffrey Kessler, the Commerce Department undersecretary who oversees the Bureau of Industry and Security.

CBS News reported that the department, under Lutnick, has not added any company to its Entity List since October 2025, despite concerns surrounding Megaspeed and its potential role in circumventing American export controls.

The network also reported that Lutnick had previously served as chairman and CEO of financial services firm Cantor Fitzgerald, which held approximately $1.2 billion worth of Nvidia stock at the time he was nominated to lead the Commerce Department. His business relationship with Huang has consequently attracted additional scrutiny.

REPUBLICANS AND DEMOCRATS JOIN IN DEMANDING ANSWERS FROM LUTNICK

The controversy has now moved beyond the White House, with lawmakers from both parties demanding explanations over the administration's handling of Nvidia's chip exports and the suspected diversion of sensitive technology to China.

Senator Elizabeth Warren, the senior Democrat on the Senate Banking Committee, has called on Lutnick and Kessler to explain why the department failed to close what she described as export control loopholes.

Republican Senator John Kennedy of Louisiana has also questioned the administration's decisions, asking why advanced American chips were allowed to reach companies suspected of having links to China.

According to CBS News, Republican lawmakers are also seeking answers from Nvidia over its relationship with Megaspeed and the circumstances under which the Singapore-based company obtained access to chips that cannot legally be exported to China.

The scrutiny is not limited to the Senate. The House Foreign Affairs Committee has sought testimony from Kessler over the Commerce Department's handling of export controls.

In a separate development, Senate Banking Committee chairman Tim Scott has asked Lutnick to appear before a public hearing next month. Former Nvidia chief Huang has also been asked to testify, reported the BBC.

According to NBC News, Lutnick has agreed to appear voluntarily before the committee. His spokesperson, Kristen Eichamer, said the Commerce Secretary had proactively agreed to address lawmakers' questions.

The committee has sought Lutnick's testimony for December 10, while Huang has been asked to appear on December 3, according to Politico. Scott has indicated that the committee could resort to subpoenas if the witnesses decline to cooperate.

TRUMP STANDS BY LUTNICK, FOR NOW

Despite the growing criticism, US President Donald Trump has publicly backed Howard Lutnick, at least for now.

In a statement cited by The Wall Street Journal, the White House said the President maintained "complete confidence" in the Commerce Secretary and his ability to carry out his responsibilities.

The administration has also defended Lutnick's broader record, pointing to his role in advancing Trump's trade and tariff policies.

However, the political difficulties surrounding the Commerce Secretary are becoming increasingly difficult to separate from the wider Nvidia controversy.

The investigation raises questions not only about the Commerce Department's enforcement of American export restrictions but also about the extent to which the administration's relationships with influential technology executives may have shaped its decisions.

For Lutnick, the immediate challenge is to explain why his department did not act more decisively against Megaspeed despite receiving warnings about the company's suspected activities. Failing to do so might cost him his job.

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(Written by Shounak Sanyal)