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Scoop: Commerce Department received national security warning on Nvidia CEO affair

Scoop: Commerce Department received national security warning on Nvidia CEO affair

Summary

A highly classified memo warning about Nvidia CEO Jensen Huang’s relationship with Alice Huang, whom U.S. intelligence officials suspect of being a Chinese agent, was sent to Commerce Secretary Howard Lutnick, according to sources cited by Axios. The disclosure has raised questions about U.S. approvals for Nvidia chip sales to China-linked companies; the administration and lawmakers face calls to explain how they handled the warning.

Key Facts

  • Secretary of State Marco Rubio oversaw the memo’s drafting, according to The New York Times.
  • The memo reportedly drew on surveillance of Alice Huang and a chip-smuggling investigation involving her company, Megaspeed.
  • The memo circulated before President Donald Trump’s May 13–15 trip to China, and Rubio reportedly briefed Trump aboard Air Force One.
  • Reuters reported on May 14 that the Commerce Department had cleared about 10 Chinese companies to buy Nvidia H200 chips.
  • The article says some export approvals predated the warning, and it is unclear whether the approvals resulted in sales.
  • Megaspeed bought billions of dollars’ worth of Nvidia chips, according to multiple media reports.
  • Jensen Huang acknowledged an affair on Sunday, and Nvidia’s board announced an independent investigation while saying it had no reason to believe national security secrets were compromised.
  • Lawmakers from both parties have called for investigations and more information, including closed-door testimony from Jensen Huang.
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