US Democrats scrutinize Nvidia chip sales deal in China with Trump admin, question company’s $26 million in donations | Today’s news
US Democratic lawmakers have launched an investigation into Nvidia’s sale of high-tech chips to China.
On Thursday, Nov. 12, Representative Richard Neal and Senator Ron Wyden asked the Commerce Department to preserve records related to a deal that allowed Nvidia to export its H200 artificial intelligence (AI) chips to China in exchange for a share of sales revenue for the US government.
Lawmakers are questioning whether the Trump administration used Nvidia’s export controls, tariffs and political contributions to exert influence over the company. Their inquiry also concerns Nvidia’s Singaporean customer Megaspeed, which US authorities suspect of supplying more advanced chips to the Chinese government.
Democrats challenge Trump administration’s Nvidia chip deal
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The investigation concerns an agreement that allows Nvidia to export H200 AI chips to China in exchange for a share of sales revenue for the US government. The report said Nvidia and AMD agreed to give the government 15% of chip sales in China for export licenses.
Lawmakers say the arrangement could have functioned as an unconstitutional export tax, with the government taking a share of Nvidia’s sales. They examine how export controls, duties and licenses were used.
US authorities reportedly suspected Megaspeed of helping ship advanced Nvidia chips to China. Lawmakers are also questioning why the Commerce Department approved the company’s purchases despite concerns raised in intelligence reports.
Yes. The lawmakers’ investigation is looking into whether Nvidia’s political spending, including $26 million donated to Trump projects, played a role in the administration’s actions. The article does not show that the donations affected the business.
Neal, the top Democrat on the House Ways and Means Committee, and Wyden, the top Democrat on the Senate Finance Committee, raised questions about the legality of the deal in a letter to US Commerce Secretary Howard Lutnick.
Lawmakers said US President Donald Trump had agreed to the authorization The sale of Nvidia H200 chips to China provided that the chips made in Taiwan were shipped to the US first. Before the Department of Commerce issued an export license, the administration imposed a duty.
The letter described the arrangement as a possible unconstitutional export tax scheme and claimed that the government effectively took over a share of Nvidia’s sales to China.
The Associated Press first reported the revenue-sharing deal in August 2025. Nvidia and AMD agreed to give the US government 15% of their revenue from chip sales to China in exchange for export licenses.
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Megaspeed and alleged Chinese connections under scrutiny
Lawmakers also wondered why the Commerce Department approved the purchase of Megaspeed’s chips despite concerns about the company and its chief executive, Alice Huang, based on intelligence reports.
US authorities were reportedly concerned that Megaspeed was involved in facilitating the deliveries insurance premium Nvidia chips to China. The letter also questioned export permits issued to other Asian companies that allegedly had no physical address.
The probe also looks into whether Nvidia’s political spending played a role in the administration’s actions. According to the paper, Nvidia donated $26 million to Trump projects, including his proposed White House ballroom.
Nvidia’s former CEO is facing a separate congressional investigation
The new investigation comes on the heels of another investigation after reports emerged of an alleged relationship between the founder of Nvidia Jensen Huang and Alice Huang, who were accused of having ties to Chinese intelligence.
In a separate move, a group of congressional Republicans, led by the Chinese Communist Party’s House Select Committee, the House Foreign Affairs Committee and the House Intelligence Committee, asked Huang to testify in a closed-door session.
(With input from agencies)
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