Bessent Blames Commerce Dept for Delay in Megaspeed Curbs, Points at Nvidia Too

At a glance

US Treasury Secretary Scott Bessent said the Commerce Department failed to properly oversee exports of high-end Nvidia AI chips. Megaspeed was investigated over suspicions it smuggled the chips into China, but it is not yet on the list of companies US firms cannot work with.

Key points

1. 1

   Bessent said several government agencies had wanted Megaspeed added to the list for months.

2. 2

   He said the Commerce Department, which controls the list, should explain its internal process.

3. 3

   Bessent also said Nvidia should be asked whether it knew its customers and sold to shell companies.

4. 4

   Megaspeed has not yet responded to a request for comment.

Why it matters

If advanced AI chips leak into China, US AI companies could lose their edge, so how export controls are run matters.