The White House is discussing the future of Howard Lutnick as commerce secretary, according to sources cited by the South China Morning Post, as the fallout from the scandal surrounding Nvidia puts the administration's policy on AI chip exports under intense scrutiny. The Japan Times reported separately that the White House was weighing Mr Lutnick's ouster amid concerns over Nvidia's export practices.
The discussions come in the wake of the resignation of Jensen Huang as Nvidia's chief executive after 33 years at the top of the chipmaker. Mr Huang stepped down on Thursday after reports of extramarital relationships, including one with a woman suspected by US authorities of spying for China. Nvidia's shares plunged on the news, with more than $500 billion wiped off the company's value.
Mr Lutnick's Commerce Department is at the centre of the policy at issue, because it oversees the export controls that govern sales of advanced AI chips to China. Democrats in Congress opened an investigation on 12 November into the Trump administration's approval and taxation of Nvidia H200 AI-chip sales to Chinese companies, including a 25 per cent tariff, and demanded that the relevant records be preserved.
The investigation was opened by House Ways and Means ranking member Richard Neal and Senate Finance ranking member Ron Wyden, who wrote to the administration about the H200 sales. The move adds congressional pressure to a controversy that has already cost Nvidia its long-serving chief executive and shaken the world's most valuable chipmaker.
Mr Huang's exit may also signal tighter US controls on AI chip exports to China, according to the South China Morning Post, as US lawmakers debate a key defence authorisation bill. The question of how far Washington should go in restricting the flow of advanced chips to China has divided the administration, with the Commerce Department's decisions now under the spotlight.
There has been no public confirmation from the White House about Mr Lutnick's position, and the reports rest on sources familiar with the matter rather than on any official statement. The White House has not said whether any decision has been taken, or whether the discussions are part of a wider review of cabinet roles.
The episode is the latest sign of how the Nvidia scandal has spread beyond the company itself. What began as a corporate governance crisis has become a political question about who approved chip sales to China, on what terms, and whether the administration's export policy is being applied consistently.
For now, Mr Lutnick remains commerce secretary, and the reports describe discussions rather than a decision. But with Congress investigating, Nvidia in turmoil and the White House said to be weighing its options, the coming days are likely to determine whether the commerce secretary survives the fallout from the biggest corporate scandal of the year.
