Scott Bessent publicly questioned Nvidia's compliance with federal trade controls and urged the board to bypass current executives for its permanent chief executive position. The chipmaker named Chief Financial Officer Colette Kress as interim CEO following Jensen Huang's abrupt exit amid an investigation into chip diversions. Bessent pointed specifically to suspicious revenue jumps in Singapore that aligned with sudden declines in reported Chinese business. This clash also highlighted ongoing friction with Commerce Secretary Howard Lutnick regarding which agencies hold the authority to blacklist foreign entities.
Key points
Scott Bessent wants an outside chief executive to lead Nvidia to address lingering corpor…: Scott Bessent wants an outside chief executive to lead Nvidia to address lingering corporate compliance and disclosure questions.
A jurisdictional dispute between the Treasury and Commerce departments has stalled effort…: A jurisdictional dispute between the Treasury and Commerce departments has stalled efforts to officially blacklist suspected front company Megaspeed.
Federal officials are closely scrutinizing Nvidia financial disclosures that showed surgi…: Federal officials are closely scrutinizing Nvidia financial disclosures that showed surging Singapore sales alongside declining revenue from China.
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Treasury Secretary Scott Bessent on Sunday called for a "dramatic shakeup" at Nvidia after CEO Jensen Huang's resignation, questioning whether the chipmaker pursued illicit sales of its advanced artificial intelligence chips to boost earnings.
Bessent said Nvidia's board should look outside the company for its next chief executive and suggested other executives should face scrutiny over the chip giant's compliance with U.S. export controls.
"I want to keep coming back to what was the culture at Nvidia, and were they pressing these seemingly illicit sales to goose their revenues and their earnings?" Bessent said in an interview on Fox News.
The remarks come as Bessent has stepped up his criticism of Nvidia and amid a growing feud with Commerce Secretary Howard Lutnick's department over the suspected diversion of advanced AI chips to China, all while defending President Donald Trump's handling of the matter.
Huang resigned Thursday following revelations about his relationship with Alice Huang, a former executive at Singapore-based Megaspeed, whom U.S. intelligence officials suspect of spying for China. Megaspeed is suspected of diverting Nvidia chips to China in violation…
Scrutiny is mounting over commercial machinery supplied to armed forces after documentation revealed vehicles intended strictly for civilian operations are active across frontline military logistics and armories. The manufacturer is examining potential contractual breaches regarding tens of millions of dollars in recent procurement deals. Findings from this review could trigger punitive measures or force supply chain halts under end-user compliance policies.
The push follows the sudden resignation of former leader Jensen Huang after reports revealed extramarital affairs, including one with an executive under U.S. investigation for suspected Chinese espionage. The Treasury's demands escalate regulatory pressure on the semiconductor giant, potentially reshaping its executive suite while officials scrutinize its international trade compliance.
Flight schedules across the country remain heavily impacted as operational challenges persist nationwide without immediate relief. Passengers and carriers are navigating extended complications that have now stretched consecutively across multiple days. The ongoing situation continues to affect the broader domestic aviation network nationwide.