Lutnick Pushed to Weaken Chip Rules That Overlap With His Family Business

Why it matters

Commerce Secretary Howard Lutnick has pushed for a weaker version of pending rules that would govern Nvidia chip sales to Southeast Asian data centers serving Chinese firms, according to a New York Times review. The centers, such as a Malaysian facility operated by the Singaporean firm Bitdeer, legally rent advanced American computing power to Chinese companies, sidestepping the United States ban on direct chip sales to China. The review found that Cantor Fitzgerald, the firm Lutnick long led and which his sons now run, has business ties to several such data center companies, including Bitdeer. The article reports no evidence that Cantor's interests influenced his deliberations, and the Commerce Department says he has complied with ethics agreements. Still, the overlap illustrates potential conflicts in his role shaping export policy. Lutnick, viewed as one of Nvidia's strongest champions in the administration, has drawn criticism from lawmakers and colleagues for delaying tighter controls, while Congress weighs a bipartisan bill to close the loophole.