US Treasury Secretary Scott Bessent has given Nvidia’s board 10 days to answer questions about export-control failures and the national security risks involved.
The demand, made on November 15, 2026, concerns allegations that advanced Nvidia AI chips were illegally routed to China through Singapore-based Megaspeed. If true, that would place some of the world’s most tightly controlled hardware where US policy is designed to keep it out.
What Bessent is asking for
Bessent called on Nvidia’s directors to provide immediate clarification about the company’s compliance with US export controls. He is concerned that potential violations could undermine national security.
Under current US policy, Nvidia cannot sell chips above the H200/H100 tier to China. Washington cites the risk of technology leakage. Those chips are used to train large AI models, making them strategically valuable in a way most consumer hardware is not.
The allegation is not that Nvidia directly sold banned chips to China. Rather, the concern is that chips may have reached China through an intermediary in a third country.
A side swipe at Commerce
Bessent’s remarks were not directed at Nvidia alone. He also expressed frustration with the Commerce Department, which is led by Secretary Howard Lutnick.
Bessent’s complaint is that Commerce did not act on earlier recommendations to add Megaspeed to the US entity list. Multiple government agencies reportedly supported the move.
Congress has taken notice. Senate Banking Committee Chair Tim Scott has reportedly summoned Lutnick and Jensen Huang to testify about export-control enforcement. Bessent’s comments have intensified bipartisan concern on Capitol Hill, and Nvidia may face a wider investigation into its sales practices and compliance culture.
Why the timing is awkward for Nvidia
The scrutiny comes as Nvidia prepares to report its fiscal Q3 earnings. Export restrictions have shaped the company’s business for years. The Megaspeed allegations raise a different question: not what Nvidia is allowed to sell, but whether it can verify where its products end up.
What this means
For Nvidia shareholders, the immediate risk is uncertainty. If compliance failures are confirmed, they could lead to restrictions on product sales and reduce revenue.
The 10-day window gives the market a specific date to watch. A detailed, credible response from the board could ease some pressure. A vague one could invite the kind of deeper investigation lawmakers are already signaling.
Bessent has effectively put the Commerce Department on notice as well as Nvidia. Whether Lutnick’s department moves to add Megaspeed to the entity list could be an early test of how aggressively the administration plans to enforce chip export rules, and how much tolerance it has for gaps in enforcement.