Treasury Secretary Scott Bessent is expressing frustration with Commerce Secretary Howard Lutnick over the failure to place Singapore-based Megaspeed International on the US government's Entity List, a move that could restrict the company's access to American technology. Bessent revealed that he, Secretary of State Marco Rubio, Defense Secretary Pete Hegseth, and other administration officials had supported blacklisting the company for months because of concerns that advanced Nvidia artificial intelligence chips were being diverted to China. However, the Commerce Department, which oversees the Entity List process, had not taken the requested action. Speaking about the controversy, Bessent said, "I am frustrated when President Trump made it very clear that China should not receive any Nvidia chips above H100s." He added that any leakage of restricted technology was "very frustrating because it hurts our great companies and the AI race, gives the Chinese an advantage." The dispute has intensified scrutiny of the administration's enforcement of export restrictions and whether American technology is reaching Beijing through overseas intermediaries.

At the center of the controversy is Megaspeed International, a Singapore-based technology company that reportedly purchased nearly $5 billion worth of Nvidia AI chips and hardware in recent years, while facing allegations that some products were improperly diverted to Chinese customers. The company has also attracted attention because of its former executive and controlling shareholder, Alice Huang, whom US intelligence reportedly suspects of having ties to Chinese intelligence. Those allegations have drawn additional attention following revelations about her relationship with Nvidia CEO Jensen Huang, who announced his resignation amid the controversy. However, Megaspeed has denied violating export controls, while Singaporean authorities have clarified that their investigation did not establish that Alice Huang committed espionage or the suspected server-declaration offenses. Singapore also said its investigation into Megaspeed and several individuals remains ongoing. The unfolding dispute raises serious questions about export-control enforcement, government oversight, and the security of America's artificial intelligence industry as Washington seeks to prevent China from gaining access to advanced American technology.