Democrats Open Probe Into Nvidia H200 China Sales and Trump Revenue Cut

Democrats in Congress opened an inquiry on Thursday into how the Trump administration handled Nvidia's chip sales to China. The trigger is concrete: a 15% revenue-sharing deal, a $26 million donation, and export licenses issued despite intelligence warnings.

The inquiry comes from Rep. Richard Neal of Massachusetts, the top Democrat on the House Ways and Means Committee, and Sen. Ron Wyden of Oregon, the top Democrat on the Senate Finance Committee. As the minority party, they can ask questions. They cannot compel answers. Their letter to Commerce Secretary Howard Lutnick demands the department preserve records of an arrangement the lawmakers call questionable and, in their words, illegal.

The letter does not hedge. "The scheme worked like this," it states. President Trump agreed to sales of Nvidia's H200 chips to China on one condition: chips manufactured in Taiwan had to ship to the United States first. On arrival, Trump added a tariff. The letter says this was "effectively taking a cut of Nvidia's sales to China through what appears to be an unconstitutional export tax system." The Commerce Department, under Lutnick, then issued the export license.

Was the revenue-sharing deal secret?

No. The revenue split was public. In August 2025, Nvidia and AMD both agreed to share 15% of their revenue from China chip sales with the U.S. government, the Associated Press reported at the time. That agreement bought them export licenses. What the Democrats now question is not the split itself but what happened around it.

The letter asks why Lutnick kept allowing Megaspeed to buy chips. U.S. intelligence had reportedly informed him of suspicions about Alice Huang, an executive at the Singapore-based company, and of Jensen Huang's relationship with her. U.S. officials suspect Megaspeed helped route advanced Nvidia chips into China. The letter also asks why the department reportedly approved other Asian buyers "with no physical presence at their listed addresses." The target is the administration, not only Nvidia.

What role did the $26 million play?

Here the letter sharpens. It notes the export deal was approved after Trump learned of "Mr. Huang's compromised position" — a relationship with an alleged Chinese spy — and after Nvidia donated $26 million toward Trump's projects, including the ballroom. The implication is plain. The lawmakers appear to be asking whether Trump used his knowledge of the affair to secure the donations. Nvidia has not, in the source material, answered that question.

One more detail sits uneasily beside the rest. In a "60 Minutes" interview aired Sunday, Trump described threatening an unnamed AI executive with jail. After that, the executive "totally changed." Trump did not name the executive. Readers can note the timing themselves.

What happened to Jensen Huang?

The company ousted its CEO on Thursday. Huang founded Nvidia. His removal followed his confession to an extramarital affair, amid reports of a relationship with Alice Huang, the Megaspeed executive accused of being a Chinese spy. He has since faced accusations of further affairs with Nvidia employees.

He also agreed on Thursday to testify before a separate set of Republican-led committees. That group includes leaders of the House Select Committee on the Chinese Communist Party, the House Committee on Foreign Affairs, and the House Intelligence Committee. They had threatened a subpoena if he did not appear voluntarily. The session will be closed-door. This Democratic inquiry is the second congressional investigation into Nvidia's China sales and its Trump dealings since the spy affair broke.

Every promise in this story carries a caveat. The Democrats cannot subpoena anyone. The allegations against Alice Huang remain allegations. The claims of additional affairs remain accusations. What is confirmed: the 15% revenue deal, the $26 million donation, the H200 licensing path, and Huang's departure. What is not said is equally telling. Neither Nvidia nor the Commerce Department has explained, in the source material, why buyers without physical addresses received licenses. Until they do, the commercial picture for Nvidia's China revenue stays unresolved, and two congressional inquiries will keep the pressure on.