Pressure is building on Commerce Secretary Howard Lutnick over Nvidia AI chips ending up in China.
Axios reported that Lutnick resisted moves to restrict companies suspected of diverting the advanced chips, citing unnamed administration officials.
The story in 7 points
- Axios reported that Lutnick pushed back on restricting companies suspected of diverting Nvidia AI chips to China.
- One of those companies is Singapore-based Megaspeed, according to the report.
- President Trump approved action on at least three occasions, in May, August and on Nov. 5, Axios reported.
- The report was based on unnamed administration officials.
- A Commerce Department spokesperson disputed part of the account.
- Sen. John Kennedy and Rep. Bill Huizenga are among lawmakers pressing Lutnick for answers.
- The US restricts sales of the most advanced AI chips to China over national security concerns.
The Commerce Department is responsible for enforcing US export controls on advanced technology, including the AI chips that power large language models. Officials have long warned that some chips reach China through companies based in other countries.
Why it matters
The reports raise questions about how strictly the US is enforcing its own chip rules. Lawmakers from both parties have made AI chip exports a national security priority, and any sign of weak enforcement is likely to lead to hearings and more scrutiny of the Commerce Department.
Sources: Axios, The Daily Beast via Yahoo News