US Treasury Secretary Questions Whether Nvidia Knowingly Sold AI GPUs to Shell Companies, Calls for Internal Accountability

US Treasury Secretary Scott Bessent recently questioned in a CNBC interview whether Nvidia knowingly sold restricted AI graphics processing units (GPUs) to shell companies. He pointed out that despite strict US export controls, a significant amount of restricted hardware still reaches competitors like China through intermediaries.

Bessent emphasized that the issue should not focus solely on the personal actions of Nvidia CEO Jensen Huang, but rather on whether Nvidia knew its clients and had robust internal measures to prevent such "leakage." He stated, "I think it is important that anyone at the company there be held accountable for that."

He also criticized Nvidia's General Counsel Timothy Teter, who reportedly contacted the US Department of Commerce to inquire about authorities' involvement in detaining Megaspeed's Alice Wong in Singapore. Bessent argued that Teter should have focused on strengthening internal oversight rather than haranguing government officials. However, Bessent acknowledged that it remains unclear whether Huang himself was aware of these potentially illicit activities.

Additionally, Bessent revealed that the Departments of the Treasury, War, and State, along with the Office of the US Trade Representative (USTR), had supported adding Megaspeed to the Entity List for months. However, the Bureau of Industry and Security (BIS) under the Department of Commerce delayed this action due to concerns about worsening trade tensions with China.