United States Department of the Treasury
Scott Bessent wants answers on alleged chip diversion to China through Singapore-based Megaspeed, and he is not hiding his frustration with Commerce
US Treasury Secretary Scott Bessent has put Nvidia’s board on a clock. He wants answers within 10 days about export-control failures and the national security risks tied to them.
The demand, made on November 15, 2026, centers on allegations that advanced Nvidia AI chips were illicitly routed to China through Megaspeed, a company based in Singapore. If true, that would put some of the most tightly controlled hardware in the world in exactly the place US policy is designed to keep it out of.
What Bessent is asking for #
Bessent called for immediate clarification from Nvidia’s directors on the company’s compliance with US export controls. His concern is that potential breaches could undermine national security.
Under current US policy, Nvidia cannot sell chips above the H200/H100 tier to China. Washington cites the risk of technology leakage as the reason. Those chips power the training of large AI models, which makes them strategically valuable in a way most consumer hardware is not.
The alleged problem is not that Nvidia sold banned chips directly to China. It is that chips may have reached China anyway, through an intermediary in a third country.
A side swipe at Commerce #
Bessent’s remarks were not aimed solely at Nvidia. He also expressed frustration with the Commerce Department, led by Secretary Howard Lutnick.
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His complaint: Commerce did not act on earlier recommendations to add Megaspeed to the US entity list. Multiple government agencies had reportedly supported that move.
Congress has noticed. Senate Banking Committee Chair Tim Scott has reportedly summoned Lutnick and Jensen Huang to testify about export-control enforcement. Bessent’s comments have fueled bipartisan concern on Capitol Hill, and Nvidia may face a broader investigation into its sales practices and compliance culture.
Why the timing is awkward for Nvidia #
The scrutiny lands as Nvidia prepares to report its fiscal Q3 earnings. Export restrictions have shaped Nvidia’s business for years. The Megaspeed allegations raise a different concern: not what Nvidia is allowed to sell, but whether it can verify where its products end up.
What this means #
For Nvidia shareholders, the near-term risk is uncertainty. Compliance failures, if confirmed, could bring restrictions on product sales and hit revenue. The 10-day window gives the market a concrete date to watch. A detailed, credible answer from the board could ease some pressure. A vague one could invite exactly the kind of deeper investigation lawmakers are already signaling.
Bessent has effectively put Commerce on notice alongside Nvidia. Whether Lutnick’s department moves to add Megaspeed to the entity list could become an early test of how aggressively the administration plans to enforce chip export rules, and how much tolerance it has for gaps in that enforcement.
Disclosure: This article was edited by John Chen. For more information on how we create and review content, see our Editorial Policy.