Lutnick held on through the Epstein scandal. The Nvidia scandal is qualitatively different.

Over the last couple of years, there’s been some unexpected overlap between the political world and the tech industry, though most of it has related to money: Executives at tech giants have, for example, shoveled millions at Donald Trump for some of the president’s pet vanity projects, and at Republican candidates aligned with the industry’s priorities.

They’ve also played an unconstructive role in taking over communications channels that are key to contemporary politics, including social media platforms.

But in recent days, the worlds of politics and tech have run into each other in a very different kind of context.

It would be foolish to even try to summarize recent developments with Nvidia in one blog post, but suffice it to say, Jensen Huang created one of the most valuable companies on the planet, creating computer chips that are fueling the AI industry. As his power and wealth grew, so too did Huang’s political influence, and he became a regular visitor to Donald Trump’s White House. (His generous support for the president’s ballroom vanity project no doubt helped open some doors.)

That said, Huang’s reported extramarital affairs, including one with an alleged Chinese spy, drove him from the company he helped create, in a move that carries economic, technological, international, national security and political implications.

Among the questions, however, is who’ll be left holding the bag in Washington, D.C. For now, the answer appears to be Commerce Secretary Howard Lutnick. MS NOW reported:

The White House blame game over the Nvidia spy scandal spilled into public view on Friday, with Treasury Secretary Scott Bessent suggesting the Commerce Department should have taken more action on the artificial intelligence chipmaker’s sales to China.

Commerce Secretary Howard Lutnick has faced mounting scrutiny on Capitol Hill for his reported failure to restrict the sale of advanced Nvidia chips to China after receiving U.S. intelligence that the company’s CEO, Jensen Huang, was in a relationship with a suspected Chinese spy.

During an appearance on CNBC, Bessent was asked about the delay in blacklisting Megaspeed, a Singapore-based company where the suspected spy was a top executive, which bought Nvidia chips, and which has been accused of helping China.

“Commerce has the pen,” Bessent replied, referring to Lutnick’s Cabinet agency. “You will have to ask them about their internal processes,” Bessent added.

WOW — Bessent throws Lutnick under the bus: “Treasury, War, USTR, and State were in favor of putting Megaspeed on the entity list for months, but Commerce has the pen. You will have to ask them about their internal processes.”

— Aaron Rupar (@atrupar.com) 2026-11-13T13:18:13.699Z

To be sure, Lutnick has been in trouble before, most notably earlier this year, when he faced calls for his resignation following revelations about his Jeffrey Epstein ties.

What’s different this time is the scope of the Republican pushback against the hapless secretary.

Indeed, several GOP members who’ve been largely aligned with the Trump White House, including Sens. Jim Banks of Indiana and John Kennedy of Louisiana, among others, have made their dissatisfaction with Lutnick clear. The president hasn’t joined the pile-on, though The Wall Street Journal reported that some of Trump’s team “have started shifting blame” to the commerce secretary, pointing to, among other things, his close ties to Huang. (“Howard is the person I talk to most in the administration,” Huang said last year.)

For his part, Lutnick hasn’t said much publicly, though he did agree to testify before the Senate Banking Committee, in a hearing scheduled for Dec. 10, though it’s an open question as to whether or not the White House will see the commerce secretary as too politically inconvenient to keep around for another month. Watch this space.

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