Nvidia scandal: Howard Lutnick under pressure over alleged lack of action

One of Donald Trump’s top lieutenants reportedly could soon be fired, as criticism mounts over commerce secretary Howard Lutnick’s apparent lack of action over the Nvidia spying scandal .

Jensen Huang resigned from Nvidia on Thursday, and was replaced on an interim basis by chief financial officer Colette Kress after reports emerged of multiple affairs, mist importantly with Alice Huang, who is no relation but is suspected to be a Chinese spy.

Pressure is mounting on Lutnick after it emerged that a US intelligence report warning about Huang’s relationship with the alleged Chinese spy Alice Huang was circulated among senior figures in the Trump administration .

Lutnick is scheduled to testify alongside ousted the ousted Nvidia chief before Congress in the coming weeks.

He is also facing criticism for a delay by the commerce department in adding Singapore-based Megaspeed, which is associated with Alice Huang and has bought billions of dollars of Nvidia chips in recent years, to Washington’s blacklist of companies that the US considers a risk to national security despite reported concerns within the administration.

White House officials are now discussing whether Lutnick should be fired, the Associated Press reported.

John Curtis, a Utah Republican senator, said that Lutnick’s reported delay on export controls regarding Megaspeed “raises the question of whether the commerce department is acting in the best interests of the American people”.

“There needs to be a thorough investigation and accountability for the outrageous circumvention of national security export controls,” Republican senator John Cornyn told the Financial Times. “Heads should roll.”

Senate Democratic leader Chuck Schumer said Huang and Nvidia must answer as to whether America’s security had been jeopardised, adding that the Trump administration also must account for what it did once it learned about Jensen Huang’s reported relationship with Alice Huang.

“Secretary Lutnick has proactively agreed to appear voluntarily before the banking committee to address their questions,” Kristen Eichamer, a spokesperson for Lutnick, told NBC News.

Donald Trump’s close ties with Jensen Huang have also come under renewed scrutiny as a timeline of the saga started to emerge . The president called Jensen Huang two days before he stepped down and urged him to fight for his job, the New York Times has reported .

On Thursday, Schumer questioned what Donald Trump knew when he personally invited Jensen Huang aboard Air Force One on a state visit to Beijing earlier this year, adding: “Americans deserve to know that those at the highest levels of power are putting America first, not their bottom line or their personal friendships.”

House Democratic leader Hakeem Jeffries said he had demanded a classified briefing for all members of Congress about Nvidia.

Republican Tim Scott, the Senate banking committee chair, said he had sent letters asking Lutnick and Jensen Huang to appear before him, because: “Recent reports raise serious ‌concerns about our national security and the protection of sensitive US technology.”

The statement from Nvidia’s board of directors confirming Huang’s departure did not mention the spying scandal and personal conduct revelations, instead paying tribute to Huang’s “profound” contributions to the company he co-founded.

Jensen Huang is reported to have had relationships with Alice Huang as well as an Nvidia executive, Kimberly Powell, according to the New York Times, and another, unnamed employee, according to Reuters.

House foreign affairs chair Brian Mast, a Republican, said on Thursday that congressional staff had spoken to Nvidia on Wednesday night about a date and location for Jensen Huang’s testimony.

The house speaker, Mike Johnson, said on Thursday there was now growing consensus in Congress on limiting chip exports to China .

Nvidia’s advanced AI chips are widely used to develop cutting-edge AI models, making the company important to the US race against ​China to build superior AI systems. The US has sought for years to ‌limit China’s access to Nvidia’s chips because it does ‌not want the Chinese military to benefit from them.

“The export controls on chips to China has been a big issue around here,” Johnson told reporters ‌at the US Capitol, adding that he favoured limiting China’s access to the advanced technology. “I think there’s a developing consensus in Congress that is an important position to take.“

Chinese AI companies are now trying to secure Nvidia chip capacity outside China, amid growing concern that the gap in US export controls may now be closed after the scandal, people familiar with the matter told Reuters .

Beijing has also stepped up efforts to develop domestic alternatives, including through Huawei, although analysts say Chinese chips remain less efficient for training advanced AI models.

Lawmakers are pressing their colleagues to pass at least four bills on chip exports, according to statements issued since Monday.

On Chinese social media, many expressed surprise at what they see as Jensen Huang’s swift resignation, and mourned the sudden end of an era that lasted for over three decades.

News of Jensen Huang’s resignation attracted more than 400m posts overnight on Chinese microblogging platform Weibo.

Jensen Huang had enjoyed rock-star status in China, where his visits drew crowds seeking selfies and autographs and his casual outings became social-media sensations. During a January 2026 visit, opportunistic sellers advertised photographs with him for 25,000 yuan ($3,700), while a Beijing restaurant launched a special menu costing more than 400 yuan after he ate there.

Additional reporting by Yu-chen Li