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Jensen Huang has resigned, and Howard Lutnick has reportedly failed to prevent intermediaries from transferring Nvidia chips to China. Today’s show breaks it down.

“This has huge national security implications,” Crowder said.

The United States has many export controls on chips going to China to prevent China from getting ahead in AI. This is why China may or may not have sent out spies. The second key fact is that Alice Huang is suspected of using Megaspeed to facilitate access to Nvidia for Chinese companies, smuggling chips into China, and potentially working as an intermediary for Alibaba.

Per Fox News:

In the midst of the spy scandal, multiple investigative reports emerged claiming Lutnick received a classified memo warning him about Huang’s relationship with alleged Chinese spy Alice Huang, of no familial relation to the NVIDIA CEO.

Howard Lutnick is now facing backlash over this mess.

“Just to be clear, he knew,” Crowder said. “Lutnick stopped the investigation into Megaspeed after it was contacted by NVIDIA’s general counsel.”

According to TNW, “Other agencies have proposed adding Megaspeed to the entity list, the Commerce Department’s trade blacklist. The department has not done so, according to the Times. It has not added any company to the list in more than a year.”

“The department knew for months that Megaspeed was fronted by a Chinese spy and refused to blacklist it. If you can't blacklist a Chinese spy company, you cannot blacklist anything,” Crowder said.

Lutnick was also allegedly concerned with blacklisting Megaspeed because he did not want it to escalate the trade war with China.

Gerald A added, “I think the administration knew about it, but they just didn't care.”

They have not added a new company to this blacklist in over a year.

“There are so many things you have to claim you didn't know when it was out in the open -- they knew,” Crowder said.