Howard Lutnick Took a Softer Line on Nvidia as Pressure for Tighter Controls Grew
Howard Lutnick, the U.S. commerce secretary, has repeatedly resisted efforts by senior Trump administration officials to impose tougher restrictions on Nvidia’s advanced artificial-intelligence chips, particularly those sold in Asia. Most officials involved in technology policy believe controls should be tightened to prevent China from using the chips to accelerate its A.I. capabilities, with possible economic and military consequences. Lutnick, whose department oversees enforcement of U.S. technology-export rules, has instead supported a more permissive approach.
That position has triggered accusations from administration officials and members of Congress that the Commerce Department has become unusually close to Nvidia and its co-founder, Jensen Huang. Current and former officials say Nvidia receives different treatment from other companies, with its issues given special priority and routed through dedicated channels. Critics also argue that the department has failed to adequately police the movement of Nvidia chips to China.
The controversy intensified after revelations involving Alice Huang, a senior executive at Singapore-based Megaspeed. U.S. intelligence agencies believe she was a Chinese spy, while Megaspeed is suspected of helping smuggle Nvidia chips to China. Jensen Huang was reportedly in a relationship with her, and he announced on Thursday that he would step down from Nvidia, sending the company’s shares sharply lower. The developments have raised fresh questions about whether Lutnick went too far in protecting Nvidia’s interests and whether the influence of Huang, an ally of President Trump, delayed stronger action. Supporters of continued sales argue that they preserve U.S. technological leadership and discourage China from developing competing products.
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