War In The White House | Axios Reports Scott Bessent-Howard Lutnick Confrontation On AI Chips

A major controversy has erupted inside the Trump administration over allegations that US Commerce Secretary Howard Lutnick repeatedly delayed a crackdown on companies suspected of diverting advanced Nvidia AI chips to China. According to Axios, President Donald Trump authorised tougher action against suspected chip diversion, but Lutnick allegedly resisted enforcement amid concerns about escalating US-China trade tensions. The controversy intensified after reports that Treasury Secretary Scott Bessent confronted Lutnick during a White House Situation Room meeting over the failure to blacklist Megaspeed, a company accused of helping restricted American technology reach China. The Commerce Department has disputed accounts of the confrontation. The row has also drawn attention to Nvidia CEO Jensen Huang amid separate allegations involving a Megaspeed employee. Why is Washington struggling to enforce its AI chip restrictions? Could the controversy trigger tougher export controls, further US-China tensions and fresh uncertainty for Nvidia? Watch our detailed report.