The key facts
- Jensen Huang left the CEO post at Nvidia, which he founded in 1993, days after a publication about an extramarital affair with a Megaspeed executive
- The White House said Trump retains 'full confidence' in Commerce Secretary Howard Lutnick despite criticism from Capitol Hill
- Congress is preparing legislation to tighten chip export controls; Nvidia will report quarterly earnings next week
The Nvidia scandal and the founder's resignation
Jensen Huang, who founded Nvidia in 1993, stepped down as the company's CEO days after a publication about his extramarital affair with Alice Huang — a top executive at the Singapore-based firm Megaspeed, which US intelligence agencies suspect of ties to China. Huang and Alice Huang are not related; the publication itself came out before his resignation. According to The New York Times, the Commerce Department took no action against Megaspeed, which is at the center of the scandal around Nvidia. Huang's departure coincided with heightened scrutiny of how the government controls exports of Nvidia chips to China: the former CEO openly opposed strict US restrictions on supplies of advanced chips.
The White House defends Lutnick, Congress demands answers
The White House said on Thursday that President Donald Trump continues to back Commerce Secretary Howard Lutnick: a White House spokesman said Trump 'retains full confidence in the Secretary and his ability to carry out the duties of the most transformative Commerce Secretary in modern history.' At the same time, Lutnick has faced criticism after reports that he delayed measures against chip smuggling. Democratic Senator Elizabeth Warren, who is set to chair the banking committee, demanded that Lutnick and Deputy Secretary Jeffrey Kessler explain why loopholes in export controls have not been closed. Republican Senator John Kennedy, speaking to Politico, also said Lutnick must answer questions about approving sales of advanced chips to China. The Commerce Department did not immediately respond to The National's request for comment.
Congress prepares tighter rules
Democrats already expected increased scrutiny of Lutnick's activities after last week's victory in the midterm elections in both chambers of Congress — including because of his ties to the cryptocurrency firm Tether and US-backed deals with the mining companies USA Rare Earth and Vulcan Elements. Senate Intelligence Committee Chairman Tom Cotton, according to CNBC, urged Lutnick to restrict the US market presence of the Chinese memory chip maker CXMT; the company appears on the Pentagon's 1260H list, which links firms to China's military sphere. The Commerce Department last added the company to its Entity List restrictive list in October 2025. Senate Minority Leader Chuck Schumer on Tuesday called for bipartisan efforts to pass legislation, including the AI Overwatch Act, the Match Act and the Chip Security Act, 'to cut off China's access to advanced American technology before it is too late.' According to House Foreign Affairs Committee Chairman, Republican Brian Mast, Huang will testify before Congress this month; Mast did not rule out public hearings either. Schumer emphasized that 'despite Jensen Huang's resignation, Congress must demand answers from Huang and others at Nvidia about how they could have put US national security at risk.' Nvidia will report quarterly earnings next week; its shares fell 4.5% on Wednesday.
