U.S. · TECHNOLOGY · NOV 13, 3:20 PM ET

Nvidia scandal fallout widens as Trump’s treasury secretary blames cabinet colleague

Reported by 36 outlets in the past day, including BBC, South China Morning Post, The Guardian.

1What happened

U.S. Treasury Secretary Scott Bessent on Friday blamed the Commerce Department, led by Howard Lutnick, for delaying the blacklisting of Megaspeed, an Nvidia customer suspected of diverting advanced AI chips to China, days before U.S. President Donald Trump and Chinese President Xi Jinping are expected to meet in Shenzhen. South China Morning Post ↗

2Compared to what

America’s great building booms, compared

At an estimated 3.6% of the economy a year, the AI build-out is larger than the railroad boom and more than three times the highway program. AI spending is an estimate. Source: Stijn Van Nieuwerburgh, as reported by The Wall Street Journal, Sept. 23, 2026

3Why it reaches you

U.S. national debt: $40.61 trillion (+$437 billion since Sep 30)

4Also reported

Bessent spoke a day after Nvidia co-founder Jensen Huang resigned as chief executive following reports that he had an affair with Alice Huang, a former executive at Singapore-based... South China Morning Post ↗

Sources

THE POSITIONS IN THIS STORY

Treasury secretary The government’s chief financial officer. Runs the Treasury, manages federal borrowing and leads on taxes, sanctions and economic diplomacy.

How it is filled: Nominated by the president, confirmed by the Senate.

Why it matters: Central to trade fights, sanctions and the debt limit; markets watch what the secretary says.

U.S. Treasury ↗

The Cabinet The heads of the 15 executive departments, plus other officials the president gives cabinet rank. They run the federal government’s main agencies and advise the president.

How it is filled: Department heads are nominated by the president and confirmed by a Senate majority. They can be removed by the president at any time.

Why it matters: Changes in the cabinet signal shifts in policy, and each confirmation is a test of the president’s support in the Senate.

The White House ↗