Treasury Secretary Scott Bessent publicly blamed Commerce Secretary Howard Lutnick for the administration’s failure to blacklist AI firm Megaspeed, telling CNBC that Treasury “has been pushing for this for months” while Commerce “has the pen.” The dispute concerns the policing of AI chip exports.
Lutnick agreed this week to testify before Congress amid scrutiny following reports about former Nvidia CEO Jensen Huang’s affair with a Megaspeed executive suspected of being a Chinese spy. Some Republicans continue to defend Lutnick, and his job security remains uncertain.
Why it matters
For companies involved in AI chip exports, the dispute highlights that Commerce—not Treasury—holds the decision-making authority over whether Megaspeed is blacklisted; the outcome remains unclear.
