Scott Bessent Reportedly Presses Lutnick Over Nvidia Customer as Trump Officials Clash on China Security Risks

Treasury Secretary Scott Bessent challenged Commerce Secretary Howard Lutnick over why Megaspeed, a Singapore-based cloud computing company and Nvidia customer, had not been added to the Commerce Department's Entity List despite allegations that it helped divert advanced Nvidia chips to China, Axios reported on 11 November.

During a meeting in the White House Situation Room on Thursday, 5 November, Bessent reportedly asked Lutnick: 'How come Megaspeed isn't on the entities list?' People briefed on the exchange said Lutnick initially stammered before replying: 'I don't know. I'll look into it.'

The Commerce Department denied the reported conversation. Spokesperson Kristen Eichamer said: 'This is false. Secretary Bessent and Secretary Lutnick had no such conversation.' Treasury spokespeople could not immediately be reached for comment.

Officials Raised Concerns Over Megaspeed for Months

White House and intelligence officials had pressed Lutnick and his advisers to act against Megaspeed since autumn 2025. People familiar with the discussions said Lutnick resisted because listing the company could escalate trade tensions with China. One source said he had spent the past year 'undoing' other officials' efforts to hold Megaspeed accountable.

Commerce Undersecretary Jeff Kessler was repeatedly warned about the company during deputy-level meetings. He reportedly deferred the decision, telling officials: 'That's a decision for the secretary.'

Lutnick had also been personally handed a memorandum outlining national security concerns involving Megaspeed and its former executive Alice Huang, according to a source. Drafted by Secretary of State and National Security Adviser Marco Rubio, the memorandum was delivered to Lutnick in May ahead of President Donald Trump's trip to China, Axios reported.

Megaspeed Faces Scrutiny Over Alleged Chip Diversions

US authorities have investigated allegations that Megaspeed helped Chinese companies obtain advanced Nvidia processors in breach of export restrictions. The company has denied wrongdoing.

In a December 2025 statement, it said inspections and reviews involving the US Commerce Department's Bureau of Industry and Security (BIS), Malaysia's Ministry of Investment, Trade and Industry, and Nvidia found no evidence of illicit chip transfers or other illegal activity. The parties cited have not publicly confirmed the company's account.

Malaysia's Investment, Trade and Industry Minister Johari Abdul Ghani said on 10 November that the ministry had not opened an investigation into Speedmatrix, Megaspeed's Malaysian subsidiary, and had not received evidence that it had breached Malaysian law.

Megaspeed has also been linked to Alice Huang, a former Megaspeed executive whom US intelligence officials have reportedly suspected of being a Chinese intelligence asset. Nvidia chief executive Jensen Huang acknowledged being unfaithful to his wife in a message to employees on 8 November but did not name Alice. The New York Times separately reported on a relationship between Jensen Huang and Alice Huang.

Singapore's Ministry of Home Affairs said on 31 October that neither the government nor its officials had expressed concerns about Alice Huang's alleged intelligence connections or investigated her.

The Singapore Police Force separately confirmed that investigations into Megaspeed were continuing. It said Singapore does not enforce unilateral export controls imposed by foreign jurisdictions and does not condone businesses deliberately using the country to circumvent them. Companies are expected to take relevant foreign regulations into account in their international activities.

The Financial Times reported that Commerce had delayed efforts to add Megaspeed to the Entity List despite pressure from several US agencies. The New York Times reported that a Commerce investigation was transferred to the Justice Department after Nvidia's general counsel contacted department officials. The Justice Department later asked Commerce to pause its work.

Entity List Restricts Access to US Technology

The Entity List is administered by BIS, which oversees US export controls. Listed entities face additional licensing requirements for exports, re-exports and transfers of specified items subject to US controls. A designation does not automatically prohibit every transaction.

The New York Times reported that Commerce had gone more than a year without adding a company to the list, the longest gap in 18 years. Proposed additions are reviewed by the interagency End-User Review Committee, chaired by the Commerce Department and comprising representatives from the Commerce, State, Defense and Energy departments. Treasury is consulted when appropriate.

Megaspeed remains outside the Entity List despite proposals from other US agencies to restrict its access to American technology. The Commerce Department has not publicly announced a decision on the proposed designation.