Commerce Secretary Lutnick agrees to testify as Nvidia China chip scandal intensifies

Commerce Secretary Howard Lutnick has agreed to testify before the Senate Banking Committee as the fallout deepens from the resignation of Nvidia chief executive Jensen Huang, who admitted an affair with an alleged Chinese spy.

Lutnick was summoned by Senate Banking Chair Tim Scott as questions mount over whether Nvidia may have supplied advanced artificial intelligence chips to Chinese companies, potentially endangering U.S. national security. Huang and Lutnick each received letters on Thursday evening asking them to testify at separate hearings scheduled for Dec. 3 and Dec. 10, respectively.

The letter to Lutnick requested that he address "recent public reports about NVIDIA and the Department of Commerce's role that raises national security concerns." A spokesperson said the secretary would comply. "Secretary Lutnick has proactively agreed to appear voluntarily before the Banking Committee to address their questions," Kristen Eichamer told NBC News on Thursday. CNBC contacted the Commerce Department for comment.

The letter sent to Huang said reports about his relationship with the alleged Chinese spy "raise significant national security concerns." Huang has acknowledged an affair with an executive at Megaspeed, a Singapore-based company that has purchased more than $4.8 billion worth of advanced Nvidia AI chips over the past two years. That scandal, combined with reports of a separate affair with a senior Nvidia executive, led to his resignation on Thursday.

Lawmakers from both parties are increasingly scrutinizing Lutnick's handling of chip policy, including whether his department has done enough to curb the flow of AI chips to China and whether it oversaw Nvidia's exports rigorously enough. Senator Jim Banks has been especially critical, saying on Fox News on Thursday that Lutnick "appears to have used loopholes to allow some of these chip sales to occur."

Sen. Elizabeth Warren, D-Mass., who is set to chair the Senate Banking Committee from January, said on Thursday that "Secretary Howard Lutnick and Under Secretary Jeffrey Kessler must explain why they have not closed export control loopholes and act today to ensure our advanced technology is not fueling China's military." In a joint letter with incoming Senate Foreign Relations Chair Chris Coons published Wednesday, the pair demanded that all documents related to the export of Nvidia chips to China be preserved.

Separately, Sen. Ron Wyden, D-Ore., and Rep. Richard E. Neal, D-Mass., informed Lutnick that they are investigating the approval of Nvidia chip sales to companies with ties to the Chinese government, military and sanctioned entities. Rep. Brian Mast, R-Fla., said on Thursday that Congress needed to investigate the Commerce Department's role in approving AI chip exports to China, though he added that he had confidence in Lutnick.

Criticism has also been building over President Donald Trump's administration for declining to place more than 100 companies identified as national security risks on a trade blacklist, including Chinese AI startup DeepSeek and memory chipmaker CXMT, Reuters reported in June. Lutnick is a long-standing friend of Trump, with a relationship spanning more than three decades, and is widely regarded as a close confidant of the president.