Megaspeed Bought More Than $4 Billion in NVIDIA Chips Amid U.S. Dispute Over Restrictions
Key Facts
U.S. Treasury Secretary Scott Bessent criticized the Commerce Department on Friday for delaying restrictions on NVIDIA chip exports to Megaspeed, in a public dispute over which agency has the authority to place the company on an export-control list. Bessent said he was "frustrated by the Commerce Department’s delay," pointing to the continued holdup despite support for the measure from other U.S. departments and agencies. He added that Treasury, State, Defense and the U.S. Trade Representative had supported placing Singapore-based Megaspeed International on the list for months. The Commerce Department took charge of the decision, Bessent said, making it the focus of his criticism. The dispute puts controls on AI chip exports at the center of debate over China’s access to advanced technology.
Bessent said the "Commerce Department holds the pen," adding that his deputy had been pushing for the measure for months. His remarks show that the objection concerns the delay within the administration, while the authority to list the company remains with the Commerce Department. The Associated Press described Bessent’s public criticism as an unusual rebuke directed at Commerce Secretary Howard Lutnick. The case centers on a company suspected of helping Chinese firms gain access to advanced NVIDIA chips. Megaspeed bought more than $4 billion in advanced chips from the U.S. company, according to reports cited in the agency’s coverage.
The Commerce Department’s Bureau of Industry and Security began investigating Megaspeed International in 2024, then referred the investigation to the Justice Department, according to the Associated Press. The department’s National Security Division is examining whether the company violated export-control laws. The investigation includes Alice Huang, the agency reported. CBS said the U.S. government suspects Megaspeed directed advanced NVIDIA chips to China in circumvention of a U.S. export ban. The matter remains under investigation, and the available facts do not establish that a violation occurred.
Political scrutiny of the Commerce Department’s oversight of AI chip exports has increased. Lutnick agreed to testify before the Senate Banking Committee on December 10, according to CBS. The testimony is expected to give lawmakers an opportunity to question the secretary about the department’s handling of the matter, as the dispute over the action involving Megaspeed continues. As part of congressional oversight, Senator Michael Bennet asked administration officials on November 11 for a written update on the continuing Justice Department investigation. Bennet set November 24, 2026, as the deadline for a response.
In a letter dated November 11, Senators Elizabeth Warren and Chris Coons asked officials to preserve records and materials related to NVIDIA exports. They requested confirmation that preservation instructions had been issued by November 17, according to the Senate Banking Committee. The move is part of scrutiny of chip exports and suspicions they were diverted to China. In the broader context of U.S. policy, the Treasury Department announced on October 8 that it was targeting what it called the remnants of Iran’s shadow fleet, saying the action targeted tanker networks transporting oil and petroleum products to foreign markets. Bessent then linked the blockade to a decline in Iranian oil shipments outside the blockade line and said Treasury would continue exposing those facilitating oil sales.
In the stock market, EL7 data showed NVIDIA shares closing at $166.19 on November 12, 2026. The price was from the session before Bessent’s remarks cited in the report and does not reflect a market reaction in Friday’s session. The U.S. Treasury had imposed sanctions on Iran-linked oil networks in India and Turkey on November 5, according to a report published by EL7. The move provides context for the U.S. sanctions campaign but is separate from the current dispute over chip export controls. The case’s next steps center on congressional requests and the Justice Department’s review, alongside Lutnick’s testimony scheduled for December.