Planning Nvidia investigations, top Democrats tell Trump administration to ‘preserve all records’

Democratic Sens. Elizabeth Warren of Massachusetts and Chris Coons of Delaware have formally asked the Trump administration to “preserve all records” related to the administration’s dealings with Nvidia (NVDA) as Democrats prepare to take power on Capitol Hill in 2027 and promise to probe the issues surrounding CEO Jensen Huang’s departure.

The request came in a letter Wednesday evening targeting any administration materials related to the chipmaker’s exports to China, as well as the ousted CEO’s affair with a suspected Chinese intelligence asset.

Huang’s resignation “does not absolve him, other executives, or the company as a whole of responsibility for putting our national security at risk or for any potential violations of our laws,” Warren said in a statement Thursday morning adding that Trump officials must still “explain why they have not closed export control loopholes.”

The letter was directed to Commerce Secretary Howard Lutnick, Secretary of State Marco Rubio, and White House chief of staff Stephen Miller and noted reports that Trump officials were aware of concerns about Nvidia, “yet did not move to block the continued flow of advanced AI chips to Megaspeed or other companies affiliated with the suspected operative.”

The White House didn’t offer an immediate response Thursday morning. The letter asked the officials to confirm by next Tuesday that they will comply and have begun the document preservation process.

Huang stepped down as CEO on Thursday as the scandal over his extramarital affairs quickly besieged one of the world’s most valuable companies and its founder.

A likely focus on Lutnick

Warren and Coons are in line to be the heads of the Senate’s powerful Banking and Foreign Relations committees and will oversee any investigations with subpoena power.

Meanwhile, the still-unfolding scandal has multiple prongs that touch the White House and the Trump administration.

Huang lobbied President Trump to loosen limits on advanced chips, and the White House allowed Nvidia to ship certain versions to China and other countries deemed security risks.

Trump reportedly didn’t take action when he learned about the possibility of a security breach and has repeatedly defended Huang in recent days, calling him “an honorable guy.”

Axios reported that Trump last week ordered a crackdown on companies suspected of diverting Nvidia’s advanced AI chips to China, but that it was Lutnick who stood in the way and at least slow-walked the order’s execution.

That turned the focus on Lutnick, who will be under perhaps the most direct scrutiny in the months ahead.

Ruben Gallego, another Democratic senator and potential 2028 presidential candidate, wrote on X that Lutnick “sold out our national security to keep the stock market high.”

Lutnick has also drawn scrutiny from Trump allies.

“Secretary Lutnick needs to answer [why he chose to allow the sales of advanced chips] in front of God and country,” Republican Sen. John Kennedy of Louisiana told Politico.

Steve Bannon, who served as the White House’s chief strategist in the first Trump administration, recently said, “We are going to have to get to the bottom of what happened at Commerce.”

Letters asking for preservation of documents are a standard first step as investigations ramp up.

In their letter, Warren and Coons said publicly available information “raises significant concerns about the federal government’s ability to effectively enforce our export controls and protect our national security.”

The senators also requested a congressional briefing on possible national security risks.

This story has been updated.

Ben Werschkul is a Washington correspondent for Yahoo Finance.