A bitter fight inside Donald Trump’s cabinet has spilled into view after Treasury Secretary Scott Bessent pointed the finger directly at Commerce Secretary Howard Lutnick over an alleged Nvidia chip leak to China.
The clash exposes growing friction at the highest levels of the administration over how sensitive US chip technology may have crossed borders despite strict trade controls. At the center of the dispute is what Trump and his senior aides knew about potential security breaches, and whether officials dragged their feet when alarms first sounded.
Also read: Nvidia White House Scandal Puts Heat on Trump and Lutnick
Why Scott Bessent targeted Howard Lutnick
Bessent has openly accused Lutnick of failing to move fast enough as warnings mounted that restricted hardware was reaching Chinese entities. The Commerce Department oversees the enforcement of trade blacklists and export restrictions, placing Lutnick at the front line of stopping illicit semiconductor transfers.
Yet officials within the administration argue that Commerce moved far too slowly to plug vulnerabilities. The public finger-pointing reveals an escalating power struggle between Treasury and Commerce over who steers economic security.
A resignation tied to suspected espionage
The cabinet fallout follows a sudden executive shake-up at the world’s most valuable chipmaker. Nvidia’s chief executive resigned after allegations surfaced involving personal affairs, including a relationship with a woman suspected of being an operative for China.
That departure sent shockwaves through Washington and Silicon Valley. Jensen Huang had been a central figure in White House technology gatherings, including an East Room luncheon hosted by Trump alongside Meta’s Mark Zuckerberg, SpacexAI’s Elon Musk, AMD’s Lisa Su, and House Speaker Mike Johnson. Investigators now want to establish whether personal ties exposed company secrets.
Fallout from the Nvidia chip leak across Washington
The controversy surrounding the Nvidia chip leak reaches far beyond corporate misconduct. If Chinese networks managed to obtain unauthorized access to American hardware, Washington’s entire strategy to maintain an edge in artificial intelligence faces serious scrutiny.
Trump’s inner circle now faces intense questions regarding the administration’s timeline. Lawmakers want to know whether intelligence warnings were shared between departments or held back due to turf wars among top cabinet officials.
What to watch next
Congressional oversight panels are preparing formal inquiries to obtain internal memos and communications between the Commerce Department and the Treasury. Lawmakers are expected to schedule hearings to determine who knew about the security risks and when Lutnick first received briefings on the matter.
Source: BBC
