White House officials are actively discussing whether to fire Commerce Secretary Howard Lutnick, according to the Associated Press. This pressure follows Jensen Huang’s Thursday resignation from Nvidia and his replacement by interim chief financial officer Colette Kress. Reports indicate Huang had multiple affairs, most importantly with Alice Huang, who is no relation but suspected to be a Chinese spy. A US intelligence report warning about this relationship was circulated among senior figures in the Trump administration before any action was taken.
Congressional Backlash and Export Delays
Criticism centers on the commerce department’s delay in adding Singapore-based Megaspeed to Washington’s blacklist of national security risks. Megaspeed is associated with Alice Huang and has bought billions of dollars of Nvidia chips in recent years despite reported concerns within the administration. Senator John Curtis stated that this delay "raises the question of whether the commerce department is acting in the best interests of the American people." Republican senator John Cornyn told the Financial Times that "Heads should roll" after a thorough investigation into the outrageous circumvention of export controls. Senate Democratic leader Chuck Schumer demanded accountability for what the administration did once it learned of the relationship, while House speaker Mike Johnson noted growing consensus in Congress on limiting chip exports to China.
Lutnick is scheduled to testify alongside the ousted Nvidia chief before Congress in the coming weeks. His spokesperson, Kristen Eichamer, told NBC News that Lutnick has proactively agreed to appear voluntarily before the banking committee. The New York Times reports that President Trump called Huang two days before he stepped down and urged him to fight for his job. This timeline complicates the narrative as Trump personally invited Huang aboard Air Force One for a state visit to Beijing earlier this year. Schumer questioned what the president knew at that time, arguing that Americans deserve to know those at the highest levels of power are putting America first, not their bottom line or personal friendships.
Chip Supply and Legislative Response
Nvidia’s advanced AI chips are widely used to develop cutting-edge AI models, making the company vital to the US race against China. Lawmakers are pressing colleagues to pass at least four bills on chip exports, according to statements issued since Monday. House foreign affairs chair Brian Mast said congressional staff spoke to Nvidia on Wednesday night about a date and location for Huang’s testimony. Meanwhile, Chinese AI companies are trying to secure Nvidia chip capacity outside China amid concern that the gap in US export controls may now be closed. Beijing has stepped up efforts to develop domestic alternatives through Huawei, although analysts say Chinese chips remain less efficient for training advanced AI models. On Weibo, news of the resignation attracted more than 400m posts overnight. During a January 2026 visit, opportunistic sellers advertised photographs with Huang for 25,000 yuan ($3,700), while a Beijing restaurant launched a special menu costing more than 400 yuan after he ate there.
