Scoop: Commerce Department received national security warning on Nvidia CEO affair

Commerce Secretary Howard Lutnick was sent a highly classified memo warning about Nvidia CEO Jensen Huang's relationship with suspected Chinese spy Alice Huang, multiple sources familiar told Axios. Why it matters: Lutnick oversees the agency charged with keeping sensitive U.S. technology out of the hands of American adversaries. The warning raises questions about how the department weighed potential security risks as it cleared advanced Nvidia chip sales to China-affiliated entities. Driving the news : Secretary of State Marco Rubio oversaw the drafting of the memo detailing Huang's relationship with Alice Huang, who U.S. intelligence officials believe is a Chinese intelligence agent, according to The New York Times. The memo, which drew on surveillance of Alice Huang and a chip-smuggling investigation into her company, Megaspeed, circulated before President Trump's trip to May 13–15 trip to China. Rubio also warned Trump directly aboard Air Force One before a refueling stop in Anchorage where Jensen Huang joined the delegation. He hadn't initially been invited to participate, the Times reported Tuesday . On May 14, Reuters reported that the Commerce Department had cleared around 10 Chinese companies to purchase Nvidia's H200 chips. Some export approvals predated the warning. Nvidia disclosed in February it had received an H200 export license, and Huang told Axios' Ina Fried in March the company had licenses covering Chinese customers. Yes, but : It's unclear how those approvals ultimately translated into sales, as China's government has halted some chip-buying activity in spite of U.S. approvals. Megaspeed purchased billions of dollars' worth of Nvidia chips, according to multiple media outlets. What they're saying : Trump said on Monday that it was possible intelligence officials had shown it to him, but he didn't recall: "Certainly, it didn't make much of an impact on me." The Commerce Department did not comment. Catch up quick : Nvidia has been rocked by the sc