Bessent Urges Nvidia Shakeup Before Nov. 17 Earnings as Illicit China Chip Sales Probe Widens
Updated
Updated · CNBC · Nov 15
Bessent Urges Nvidia Shakeup Before Nov. 17 Earnings as Illicit China Chip Sales Probe Widens
3 articles · Updated · CNBC · Nov 15
Summary
Two days before Nvidia reports earnings, Treasury Secretary Scott Bessent urged the board to hire an external CEO and scrutinize more executives, saying Jensen Huang's resignation may reflect broader compliance failures.
Bessent said investigators should examine whether Nvidia pushed seemingly illicit advanced AI chip sales to China to boost revenue, comparing the case to a bank compliance breakdown that could trigger executive removals.
Huang resigned Thursday after revelations about ties to Alice Huang, a former Megaspeed executive whom U.S. intelligence suspects of spying for China; Megaspeed is suspected of diverting Nvidia chips to China in breach of export controls.
The pressure also exposes a widening split inside the administration: Bessent says agencies backed blacklisting Megaspeed for months but Commerce 'has the pen,' after reports he confronted Commerce Secretary Howard Lutnick's team over inaction.
Bessent further questioned Nvidia's disclosures by pointing to a jump in Singapore revenue as China sales fell; Nvidia later changed its geographic reporting method, while Trump had still authorized H200 sales to approved Chinese buyers with a 25% U.S. cut.