Fallout from Nvidia CEO Scandal Widens as White House Weighs Ousting Commerce Secretary

Senior White House officials are discussing the possibility of removing Commerce Secretary Howard Lutnick in the wake of a spying scandal involving former Nvidia CEO Jensen Huang, according to two sources cited by Reuters on Thursday.

A growing number of lawmakers have criticized Lutnick due to the administration's refusal to add dozens of Chinese companies to a trade blacklist, as well as questions regarding the effectiveness of government oversight over Nvidia's exports to China.

The calls for the US Commerce Secretary's dismissal coincide with rising tensions within President Donald Trump's administration over advanced chip export policy to China, after the Jensen Huang crisis shifted from a personal matter to a file linked to national security and control over American technology.

Criticism directed at Lutnick focuses on accusations that the Commerce Department has been slow to implement measures aimed at preventing US artificial intelligence chips from reaching Chinese companies, amid fears they could be used to develop Beijing's military and technological capabilities.