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Democrats launch Nvidia investigation, write scathing letter on Huang's 'scheme' with Trump | TechCrunch

TechCrunch •
November 12, 2026 • 10:42 PM
• By Julie Bort
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This Congressional investigation into Nvidia's China sales and its dealings with Trump is the second one, so far, since news of the alleged spy affair broke.

Democrats launch Nvidia investigation, write scathing letter on Huang's 'scheme' with Trump | TechCrunch

Democrats on Thursday opened an inquiry into how the Trump administration handled Nvidia’s chip sales to China. Earlier on Thursday, the company ousted its CEO Jensen Huang . He also agreed to testify to a different set of Republican-led Congressional committees.

Huang was removed from the company he founded after he confessed to an extramarital affair amid reports of a relationship with a woman accused of being a Chinese spy. (He has since been accused of having more affairs , with Nvidia employees.)

The alleged Chinese spy, Alice Huang, was an executive of Nvidia customer Megaspeed, a Singapore-based company that U.S. officials suspect of helping route advanced Nvidia chips into China. The Democratic inquiry comes from Rep. Richard Neal (D-Mass.), the top Democrat on the House Ways and Means Committee, and Sen. Ron Wyden (D-Ore.), the top Democrat on the Senate Finance Committee. As the minority party, they can ask questions but can’t compel answers.

Their humdinger of a letter to Commerce Secretary Howard Lutnick asks the department to preserve records about an arrangement they find questionable and, they allege, illegal.

“The scheme worked like this,” as the letter describes it. President Trump agreed to sales of Nvidia’s H200 chips to China as long as the chips, manufactured by Taiwan, were first shipped to the United States. On arriving, Trump added a tariff “effectively taking a cut of Nvidia’s sales to China through what appears to be an unconstitutional export tax system,” the letter said. Then the Commerce Department, under Lutnick, issued an export license.

By the way, the deal between Trump and Nvidia to share revenue was public. In August 2025, Nvidia and AMD both agreed to share 15% of their revenue from chip sales to China with the U.S. government as part of a deal to secure export licenses, the AP reported at the time.

But the letter questions why Lutnick continued to allow Megaspeed to buy chips even after he was reportedly informed by US intelligence of their suspicions of Alice Huang and of Jensen Huang’s relationship with her. It questionswhy the department reportedly green-lit other Asian companies to buy Nvidia chips “with no physical presence at their listed addresses.” So the inquiry is aimed at the administration, not just Nvidia and Huang.

The letter also questions how Nvidia’s donations to Trump’s projects factored in. It notes that the export deal was approved after Trump learned of “Mr. Huang’s compromised position” in sleeping with an alleged spy, and after Nvidia donated $26 million toward Trump’s projects, including the ballroom. It appears to be asking if Trump used his knowledge of the affair to secure donations from Nvidia.

Interestingly, in a “60 Minutes” interview with President Trump that aired on Sunday, he mentioned how he and his team had threatened an unnamed AI exec with jail , and after that, the exec “totally changed.”

This Congressional investigation into Nvidia’s China sales and its dealings with Trump is the second one, so far, since news of the alleged spy affair broke. The Republican-led group involves leaders from the House Select Committee on the Chinese Communist Party, the House Committee on Foreign Affairs, and the House Intelligence Committee. That group has demanded that Huang come to them and testify in a closed-door session. They had threatened to subpoena him if he didn’t voluntarily agree. On Thursday, after his resignation, he agreed.

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Same Story from Other Publications

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CNBC World
12h ago
Trump doesn’t plan to raise Nvidia, spy issue during China trip: U.S. officials

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The Guardian
17h ago
Trump bought up Nvidia stock as he decided on policy that would benefit chipmaker

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President purchased up to $5m of stock before revoking Biden-era rule that limited Nvidia’s ability to sell to China

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Hamro Patro News
2h ago
Nvidia scandal looms over US-China AI talks

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ABC News Australia
11h ago
Questions left to answer in wake of Huang's departure

Questions left to answer in wake of Huang's departure

While Jensen Huang's resignation puts an end to his long reign over Nvidia, questions about America's national security and Donald Trump's knowledge of the whole saga remain.

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Sydney Morning Herald (SMH)
6h ago
‘I don’t care’: Inside Jensen Huang’s last hours as Nvidia CEO

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At the end, Jensen Huang looked broken and shattered, his legendary energy depleted.

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NPR News
13h ago
Can Jensen Huang's departure help Nvidia's competitors catch up? : Consider This from NPR

Can Jensen Huang's departure help Nvidia's competitors catch up? : Consider This from NPR

Nvidia has long been the kingpin of the semiconductor industry – a company whose huge technological bets paid off, making its microchips the most in-demand in the world.But now that its CEO Jensen Huang is out amid an alleged spying and extramarital affair scandal, will the shake-up leave an opening for Nvidia’s competitors to catch up?In this episode, we dive deep on the strategies that put Nvidia ahead of the pack, and how other companies are positioned in this moment with Dylan Patel, founder and CEO of the AI and semiconductor research firm SemiAnalysis. This episode was produced by Kai McNamee and Connor Donevan, with audio engineering by Ted Mebane. Our director is Jonas Adams. It was edited by Christopher Intagliata and Ashley Brown. Our executive producer is Courtney Dorning.

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