There have been multiple concerning reports over the last 36 hours related to Secretary of Commerce Howard Lutnick's actions related to Jensen Huang, Nvidia, Megaspeed, and enforcement and monitoring of export controls on Nvidia's advanced AI chips.
Axios reports that Lutnick has "repeatedly stood in the way" of implementing additional export controls to crack down on companies — not just Megaspeed — suspected of diverting Nvidia chips to China. According to that report, based on conversations with six separate sources, some of whom were in the room to hear discussions, "on at least three separate occasions — in May, August, and Nov. 5 — Trump approved taking action," but Lutnick stalled.
Back in May, they report, "a highly classified memo," presumably the memo drafted by Secretary of State Marco Rubio, about Jensen Huang's relationship with suspected Chinese spy Alice Huang was shared with the president and other officials. RedState can confirm that the memo was shared with administration officials, including some of President Trump's advisors, but we have been unable to confirm that the information was communicated to Trump himself.
In a meeting held shortly after that memo was circulated, "[Treasury Secretary Scott] Bessent, Director of National Intelligence Jay Clayton, [Secretary of War Pete] Hegseth and White House officials pressed Lutnick and [Commerce Undersecretary Jeff] Kessler to act, the source said, 'and they were refusing.'" Kessler oversees Commerce's Bureau of Industry and Security (BIS), charged with enforcement of export controls (among other things).
Finally, in a meeting in the White House Situation Room last Thursday, as the Nvidia scandal was heating up, Axios reports that Bessent, with Hegseth and Rubio in attendance, confronted Lutnick, saying, "How come Megaspeed isn't on the entities list?" and further pressed him about the lack of implementation of additional export controls.
Lutnick initially stammered, sources said, and then replied: "I don't know. I'll look into it."
One source, who has extensive experience concerning the chip controversy, said the reply was "bullshit" because Lutnick had resisted action ever since he was personally handed a memo, drafted by National Security Adviser and Secretary of State Marco Rubio, that outlined the problems with Megaspeed.
Then, Lutnick told the group he'd have to check with POTUS.
Lutnick's seemingly innocuous comment raised concerns, the sources said, because officials have repeatedly believed the Commerce Department would impose the export controls, only to have nothing happen.
"He's stalling it out," said one official, describing how Lutnick had previously met privately with the president to change his mind about the export limit.
"This is an ongoing concern with Howard and this issue," said another.
Since this had happened a few times previously, one of the attendees reportedly said, "Great, why don't we do it today?" The group moved to the Oval Office, where Trump called Elon Musk, who agreed with Bessent, Rubio, and Hegseth, while Lutnick argued that it would "start a trade war with China." According to a source, ""Everyone argued back that China is already doing to us what Lutnick warned would happen." Axios continued:
With Lutnick the lone holdout, Trump made his decision: "Let's get it done." But once everyone was outside of the Oval Office, Lutnick proposed a new delay tactic.
"I'll develop some options and come back," he said.
"Everyone was like: 'No, no, the decision's been made. Go fucking execute,'" one source said. "Well, it still hasn't happened."
A spokesperson for the Commerce Department denied that the confrontation took place.
As of Wednesday, Commerce hadn't added a single company to the Entity List in more than a year.
Separately, the New York Times reported that Kessler stopped a Commerce investigation into Megaspeed after Nvidia intervened. The Department of Justice has now taken over the investigation, which is ongoing. Bloomberg reported Thursday afternoon that the U.S. Attorney's office in Manhattan is leading one of the investigations, which is focused on Alice Huang and allegations that she helped smuggle Nvidia-powered servers manufactured by Super Micro into China. Super Micro co-founder Wally Liaw and two others have already been indicted in that case.
The Justice Department is investigating whether companies tied to Alice Huang, the woman at the center of the Nvidia scandal, helped smuggle Super Micro $SMCI products into China, per Bloomberg. The probe is being led by the US attorney’s office in Manhattan. It’s unclear whether it’s connected to existing chip-smuggling cases. Manhattan prosecutors already charged Super Micro co-founder Yih-Shyan “Wally” Liaw and two others in March. They’re accused of conspiring to ship Nvidia-powered servers to a Southeast Asian company and divert them to Chinese customers. Liaw has pleaded not guilty and left the company. Super Micro itself isn’t a defendant and says it’s cooperating. The DOJ is separately investigating Megaspeed International, Huang’s former company, over suspected chip smuggling. Megaspeed denies wrongdoing.
— unusual_whales (@unusual_whales) November 12, 2026
Semafor reports that there is also an antitrust investigation into Nvidia, and a separate probe into Megaspeed.
Attorney General Todd Blanche, who was not in charge when these investigations all got underway, downplayed the situation during an unrelated press conference on Thursday afternoon and said, "I don't have concerns with the Commerce Department."
Todd Blanche suggests that perhaps Alice Huang isn't really a spy after all and says he has no concerns about Lutnick's alleged involvement in the Nvidia scandal (they are circling the wagons!) https://t.co/1DsJB0zrzi
— Aaron Rupar (@atrupar) November 12, 2026
It seems that some battle lines are being drawn within the administration.
Editor's Note: The mainstream media continues to gaslight, spin, and lie about President Trump, his administration, and conservatives.
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