Scott Bessent says Treasury wanted to blacklist Megaspeed 'for months,' blaming Howard Lutnick as Nvidia fallout widens: 'Commerce has the pen'

314 points by Sufficient_Fuel5269 3 hours ago on reddit | 27 comments

[OP] Sufficient_Fuel5269 | 3 hours ago

Beyond the political noise, the news reflects how valuable AI chips have become. The United States is trying to protect its technological advantage because it considers that leadership in semiconductors will be one of the keys to economic growth and industrial power in the next decade.

joepez | 2 hours ago

Not entirely true. Lutnick wasn’t protecting the US. He was protecting people’s portfolios and his own piggy bank. He refused to put Megaspeed on the restricted list. However he knew that Nvidia chips was the target and the restrictions should have been placed on them too.

If he had done that it would have been one or two companies but as the article points out there are 100 companies he protected. Now that Nvidia is unraveling the WH is drawing Lutnick as the rightful fall guy who protected companies for dollars not interest.

Adventurous-Roof488 | 2 hours ago

I’d be happy to see him go. So corrupt. Bessent hates him too so no surprise he’s throwing him under the bus.

silicondali | an hour ago

I love to watch the girls fight.

ap1618 | an hour ago

The same Lutnick who profited massively while in federal government much like his son?

rpctaco1984 | 47 minutes ago

Interesting article regarding this topic:

https://www.semafor.com/article/11/13/2026/how-nvidias-jensen-huang-and-trump-jumped-the-guardrails

It is fascinating watching this play out.

todudeornote | 3 hours ago

Yes, but it it's also driving China to speed development of their own high-end chip manufacturing.

Though carving out special exceptions for those that contribute to Trump's ballroom (and who knows what other corruption) does a lot of harm too.

fromkatain | 2 hours ago

With oil blockade america forced japan to attack pearl harbour, now china will steal all gpus stored in taiwain

morbie5 | 2 hours ago

> forced

Japan had agency, no one forced them to start a war

Pretend_Handle_7639 | 2 hours ago

Those poor poor foreigners, absolutely zero agency at all against wicked America 🙄

todudeornote | 2 hours ago

True - our embargo drove Japan to go to war instead of backing down from their military expansion and aggression in Asia. Worth noting that they had better options. I'll add that they viewed America as soft - clearly they never studied America's civil war or our actions in WWI. Their jingoism drove their actions.

Not at all likely that China will invade Taiwan over it. The cost of such an invasion would be extraordinary - and Taiwan would destroy the chip manufacturing plants and get their top engineers out of the country before China could succeed.

Pretend_Handle_7639 | 2 hours ago

Which was exactly Jensen's argument for opposing it and getting exemptions

1776FreeAmerica | 3 hours ago

It's not trying to protect it's leadership, it's protecting an handful of corporations that struggle to innovate. It's the same system and protections across the economy. Assume growth means merging companies to increase size, and protect the largest companies from competitive and economic threats. Too big to fail, corporate lawfare, and what not.

jennysonson | an hour ago

If theres always food in the fridge for you would you ever learn how to go get food yourself? If China integrated US chips into their server they wouldnt be spending trillions trying to catch up to the tech as fast

ThePeemster228 | 9 minutes ago

Utter bot-level drivel lol

santagoo | 2 hours ago

Which is why we are slowing down data center build up as China accelerates theirs.

Wait…

TheGoldenMonkey | an hour ago

And so begins the process of each one of the members of the Trump admin blaming the other. The buck stops nowhere for this admin.

I would imagine that, when the investigation started in September 2024, the Biden admin expected to take care of all of it silently. Too bad for us the Trump admin won and ended up letting it all continue so they could continue to enrich themselves and their owners.

johnn48 | an hour ago

Yet Trump was actively working towards an agreement between China and Nvidia to find a way to get chips to China. So it appears that we don’t object to China getting chips, we object to China getting chips without our, well Trump if we’re honest, being part of the deal.