Democrats have launched an inquiry into how the Trump administration managed Nvidia chip sales to China, while the company removed its founder and CEO, Jensen Huang, earlier Thursday. Huang also agreed to testify before Republican-led Congressional committees.
Huang left the firm he established after admitting to an extramarital affair. Reports linked him to a woman accused of being a Chinese spy. He has since faced further accusations regarding relationships with Nvidia employees.
The woman in question, Alice Huang, worked for Megaspeed. Megaspeed is a Singapore-based client Nvidia serves. U.S. officials suspect the firm helped route advanced Nvidia chips into China. The investigation comes from Rep. Richard Neal, the top Democrat on the House Ways and Means Committee, and Sen. Ron Wyden, the top Democrat on the Senate Finance Committee. As the minority party, they can request information but cannot compel answers.
Their letter to Commerce Secretary Howard Lutnick asks the department to keep records regarding an arrangement they describe as questionable and potentially illegal.
The letter outlines the arrangement. President Trump agreed to sell Nvidia’s H200 chips to China provided the units, manufactured in Taiwan, shipped to the United States first. Upon arrival, Trump added a tariff, effectively taking a portion of Nvidia’s sales through an export tax system the letter calls unconstitutional. The Commerce Department then issued an export license under Lutnick.
The revenue-sharing deal between Trump and Nvidia was public. In August 2025, Nvidia and AMD agreed to share 15% of revenue from chip sales to China with the U.S. government to secure export licenses, according to AP reporting at the time.
The letter questions why Lutnick allowed Megaspeed to purchase chips after intelligence reportedly informed him of suspicions regarding Alice Huang and Jensen Huang’s relationship with her. It also questions why the department approved purchases for other Asian companies with no physical presence at their listed addresses. The inquiry targets the administration as well as Nvidia and Huang.
The letter also examines how Nvidia donations to Trump’s projects influenced the process. It notes the export deal was approved after Trump learned of Huang’s compromised position regarding the alleged affair. Nvidia donated $26 million toward Trump’s projects, including the ballroom. The inquiry appears to ask if Trump used knowledge of the affair to secure these donations.
President Trump mentioned a similar situation in a Sunday “60 Minutes” interview. He stated his team threatened an unnamed AI executive with jail. The executive subsequently “totally changed” his behaviour.
This Congressional investigation into Nvidia’s China sales and its dealings with Trump is the second one since news of the alleged spy affair broke. The Republican-led group includes leaders from the House Select Committee on the Chinese Communist Party, the House Committee on Foreign Affairs, and the House Intelligence Committee. That group demanded Huang appear for a closed-door session and threatened to subpoena him if he did not agree voluntarily. He agreed to testify on Thursday following his resignation.
What it means
For Nvidia staff and partners, the situation creates uncertainty. The company faces scrutiny over its export compliance and political connections. Huang’s departure removes a key figure from the leadership team. The Democratic inquiry focuses on whether the administration acted lawfully, while Republican committees seek information from Huang directly. Both sides are gathering evidence before any formal charges or policy changes occur.
