President Donald Trump authorized a crackdown on companies suspected of diverting Nvidia’s advanced AI chips to China on Nov. 5. It was his third such approval this year, Axios reported, citing six high-level sources who were briefed on or attended the discussions.
Axios reported that Treasury Secretary Scott Bessent urged Commerce Secretary Howard Lutnick to act against Nvidia customer Megaspeed during a Situation Room meeting. The officials then went to the Oval Office, where Trump consulted Elon Musk and approved moving forward, the outlet reported.
According to Axios, Lutnick warned that the controls “will start a trade war with China” and proposed developing options even after Trump had approved the move. The outlet reported that the restrictions had still not been implemented. It said Trump had approved action on two earlier occasions, in May and August.
The Commerce Department disputed the reported confrontation. Its spokesperson, Kristen Eichamer, told Axios in its earlier account of the meeting: “This is false. Secretary Bessent and Secretary Lutnick had no such conversation,” In its subsequent report, Axios said she would not immediately comment on the other allegations.
No Published Megaspeed Notice
An independent review of Commerce’s consolidated screening data, which includes the Bureau of Industry and Security’s Entity List, found no entry under Megaspeed’s name on Nov. 11. A search of the Federal Register likewise found no published notice mentioning Megaspeed through that date. These findings do not rule out nonpublic licensing or investigative steps.
The distinction matters to suppliers: the Entity List imposes additional export-license requirements when a listed entity is involved in a transaction. Additions are determined by a majority vote of an interagency committee chaired by Commerce, with representatives from State, Defense, Energy and, when appropriate, Treasury.
Megaspeed markets cloud computing using Nvidia processors. In a statement on its website dated Dec. 23, 2025, responding to an earlier Bloomberg article, the company disputed suggestions that it had been involved in illegal chip transfers and said it operated within applicable export-control regulations.
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