Donald Trump considers sacking Howard Lutnick after Nvidia CEO Jensen Huang resignation

The White House is considering sacking Commerce Secretary Howard Lutnick after Nvidia CEO Jensen Huang resigned from the tech giant.

Shares in the second-largest company in the world plummeted after the 63-year-old co-founder of the company admitted to an affair with alleged spy Alice Huang, a former executive of Megaspeed, which buys AI chips from Nvidia.

Chinese companies have been blacklisted from purchasing the most powerful AI chips, which are produced by the California firm.

Figures in the White House, including Donald Trump, were aware of Ms Huang's potential connection to Chinese intelligence agencies for over a year, but the US Government took no action on the briefings.

Mr Lutnick is accused of putting US national security at risk by not doing enough to limit China's access to the world-altering US technology.

Mr Trump has been in favour of cracking down on Chinese firms buying Nvidia's most powerful chips, but Mr Lutnick has stalled his efforts, according to Axios.

Singapore-based Megaspeed is alleged to provide China access to advanced Nvidia chips by renting computer power to Chinese e-commerce and technology giant Alibaba.

The firm is also said to have a financial link to the Chinese military through its investments.

Sources within the Trump administration told Reuters senior figures were now discussing whether Mr Lutnick, a long-time friend of the President, should be pushed out of his position.

The Commerce Secretary and Mr Huang have also now been called to testify in front of Congress.

Republican Senator Tim Scott, issuing the summons, said: "Recent reports raise serious concerns about our national security and the protection of sensitive U.S. technology.

"I am requesting that Nvidia CEO Jensen Huang and Commerce Secretary Howard Lutnick testify before the Senate Banking Committee.

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"The American people deserve answers."

Congress has seemingly united on export controls in the wake of the scandal.

Democratic Senator Elizabeth Warren said Mr Lutnick and his Under Secretary Jeffrey Kessler must "explain why they have not closed export control loopholes and act today to ensure our advanced technology is not fueling China's military".

US Speaker Mike Johnson said the "developing consensus in Congress" is that China's access to chips should be curbed.

Mr Huang, the now-ousted Nvidia boss, is said to have agreed to testify in front of three US House committees.

In addition to his liaison with Ms Huang, the Nvidia boss is alleged to have affairs with two other women, including the company's vice president of healthcare, Kimberly Powell, who directly reported to him.

A White House spokesman said the President "maintains complete confidence in [Mr Lutnick] and his ability to carry out the position as the most transformative Commerce Secretary in modern history".

Beijing denies that Ms Huang is a spy, and US Attorney General Todd Blanche said the Justice Department has not yet concluded if she was an intelligence asset.

Mr Lutnick, if removed, would be the latest White House shake-up after the sacking of Susie Wiles in the wake of a disastrous midterms, and the rapid removal of former Press Secretary Katie Zacharia after her quick collapse in front of the press.