Scott Bessent blames Howard Lutnick's Commerce Department for delay in blacklisting Nvidia customer Megaspeed

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Scott Bessent said several US agencies backed placing Nvidia customer Megaspeed on the export blacklist, but the Commerce Department has not acted.

US Treasury Secretary Scott Bessent has publicly criticised the Commerce Department for failing to act against Megaspeed, a customer of chipmaker Nvidia that has been flagged by US officials over potential national security concerns.

The controversy surrounding Singapore-based data centre operator Megaspeed centres on allegations that it may have helped China gain access to advanced Nvidia artificial intelligence chips in violation of US export restrictions. US officials have suspected that the company could have diverted restricted semiconductors to Chinese entities, potentially giving Beijing access to technology that Washington considers strategically sensitive

Megaspeed, however, has strongly denied the allegations, describing itself as a “compliant and legal company” and stating that inspections by the US Commerce Department's Bureau of Industry and Security, Malaysian authorities and Nvidia found “no evidence of any violations concerning the illicit transfer of chips or any illegal activities”, as per Reuters. The company has also said that it is considering legal action over the allegations.

Speaking to CNBC on Friday, Bessent said several key departments within President Donald Trump's administration had supported placing Megaspeed on the US government's export blacklist. However, he suggested that the Commerce Department, headed by Howard Lutnick, had not taken the necessary steps to implement the proposal.

The remarks have brought an internal disagreement within the Trump administration into the public domain.

Also Read: Democrats demand answers on Trump's Nvidia ties after Jensen Huang's exit: ‘Americans deserve to know’

Bessent's criticism comes amid growing discussions among some of Trump's advisers about whether Lutnick should remain in his position as Commerce Secretary.

Citing people familiar with the discussions, CNN reported that concerns have intensified following the fallout surrounding Nvidia chief executive Jensen Huang's resignation.

Despite the…

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