Democrats open second probe into Nvidia’s China chip sales and Trump deal

On Thursday, Democratic members of Congress announced a fresh investigation into Nvidia’s sales of H200 chips to China and a purported revenue‑sharing arrangement with former President Donald Trump, marking the second such probe since the alleged spy affair emerged.

What does the Democrats' letter allege?

The letter to Commerce Secretary Howard Lutnick, as TechCrunch reported, claims President Trump approved Nvidia’s H200 chip sales to China only if the Taiwan‑made chips first entered the United States, then added a tariff that the letter describes as an “unconstitutional export tax” before the Commerce Department issued an export license. It also questions why the department continued to grant licenses to Megaspeed—a Singapore‑based Nvidia customer whose executive, Alice Huang, is accused of spying—and other Asian firms lacking a physical presence, despite intelligence warnings about Alice Huang and Jensen Huang’s relationship with her.

Who is leading the inquiry and what authority do they have?

Rep. Richard Neal (D‑Mass.), the top Democrat on the House Ways and Means Committee, and Sen. Ron Wyden (D‑Ore.), the top Democrat on the Senate Finance Committee, are spearheading the effort, and TechCrunch noted that as the minority party they can request information but cannot compel answers.

How is Nvidia responding to the scrutiny?

Earlier on Thursday, Nvidia removed founder Jensen Huang as CEO after he admitted to an extramarital affair linked to the alleged Chinese spy, and he subsequently agreed to testify before a separate set of Republican‑led congressional committees, according to TechCrunch. The investigation also highlights Nvidia’s $26 million donations to Trump‑related projects, including a ballroom, and asks whether Trump used knowledge of the affair to secure those contributions.

The Republican‑led group of committees, including the House Select Committee on the Chinese Communist Party, the House Committee on Foreign Affairs and the House Intelligence Committee, has demanded a closed‑door testimony from Huang and threatened a subpoena; Huang agreed after his resignation, TechCrunch reported.