U.S. controls on Nvidia chips sold to Asia are under scrutiny, with critics saying Commerce Secretary Howard Lutnick’s department has taken a softer approach and failed to adequately police sales that could reach China. The department opened an investigation in 2024 into Singapore-based Megaspeed International, run by Alice Huang, over alleged diversion of sensitive technology. Critics cite Lutnick’s past relationship with Nvidia CEO Jensen Huang, while supporters argue chip sales help U.S. technology remain competitive. China hawks warn that access could bolster China’s AI and military capabilities. A separate report says Jensen Huang resigned as Nvidia CEO, effective immediately, after acknowledging an affair with Alice Huang; it cites U.S. intelligence agencies’ belief that she was feeding information to Beijing. The two are not related.
AI adoption is also raising questions about security and oversight. Researchers behind S1-Evo say untrusted context can manipulate rule-based decision models used in LLM agents for routing, moderation and authorization. Across four benchmarks and three models, their framework achieved a 71.99% mean attack success rate and caused up to 24% end-to-end agent violations. In banking, McKinsey’s survey of 46,000 retail customers found 72% of AI users would let an agent perform one financial task, but would cap independent approvals at $500. Banks must verify consent, retain records, monitor unusual payments and manage token expenses that McKinsey warns could reach 20% of total labor costs. The U.K. FCA is relying on existing rules rather than proposing AI-specific regulation.
Businesses are putting AI to work in more targeted ways. Flitch announced tools for independent lumber and building-material dealers on November 13, 2026, that draft quotes from customer messages, suggest inventory purchases and match invoices with orders and receipts; employees review and approve the outputs. Lincoln City Football Club says its work with sponsor and supplier Solgari turns previously uncaptured customer conversations into sales information and has increased sales and revenue. Restaurant-focused Kutlerri.ai raised $4 million from Narahari Investments to expand its AI Catering Sales Agent, beta-test three more agents and develop a mobile-first self-service app. The startup says its agent helped RASA generate $450,000 in additional catering revenue over 10 months, more than 10 times the service cost, without adding sales staff.
Funding and investment views point to continued confidence in AI. Among the largest U.S. startup rounds announced November 7–13, 2026, Mirendil raised a $1 billion Series A for agentic AI in research and development, while Mercor raised $750 million to connect AI developers with human experts. HSBC global chief investment officer Willem Sels says investors still underestimate AI, which he compares to general-purpose technologies such as the internet, the wheel and electricity. Separately, Singapore’s Monetary Authority issued financial-sector AI risk guidelines on October 7, 2027, with firms expected to implement them by that date; MAS says it will offer support and training and review the guidance regularly.
Key Takeaways
- Critics say Commerce Secretary Howard Lutnick’s department has taken a soft approach to Nvidia chip controls; the department opened a 2024 investigation into Singapore-based Megaspeed International over alleged diversion of technology to China.
- A separate report says Nvidia CEO Jensen Huang resigned immediately after acknowledging an affair with Alice Huang, whom U.S. intelligence agencies reportedly believed was feeding information to Beijing; they are not related.
- S1-Evo researchers report a 71.99% mean attack success rate against decision models used in LLM agents and up to 24% end-to-end agent violations.
- McKinsey found 72% of surveyed AI-using banking customers would delegate one financial task, but limit independent approvals to $500; token costs could reach 20% of banks’ total labor costs.
- Flitch’s new AI tools draft dealer quotes, suggest inventory purchases and match invoices, while requiring staff review and approval.
- Lincoln City Football Club says Solgari’s AI analysis of customer conversations has helped increase sales and revenue.
- Kutlerri.ai raised $4 million to expand its restaurant AI products; it says its agent helped RASA generate $450,000 in extra catering revenue over 10 months.
- Mirendil raised a $1 billion Series A for agentic AI in R&D, and Mercor raised $750 million to connect AI developers with human experts.
- HSBC strategist Willem Sels says investors underestimate AI’s potential as a general-purpose technology.
- Singapore’s MAS issued AI risk guidelines for financial firms and set October 7, 2027, as the implementation date.
Critics question Lutnick’s oversight of Nvidia chip sales to China
Commerce Secretary Howard Lutnick faces criticism over the agency’s oversight of Nvidia AI chip sales, including sales to Singapore-based Megaspeed International. The company, run by Alice Huang, is accused of diverting sensitive technology to China, and the Commerce Department opened an investigation in 2024. Critics point to Lutnick’s past relationship with Nvidia CEO Jensen Huang and say the department has not added a company to its Entity List since October 2025. Treasury Secretary Scott Bessent reportedly confronted Lutnick last week over the failure to place Megaspeed on the list.
Lutnick faces criticism over a softer approach to Nvidia chip controls
Commerce Secretary Howard Lutnick has clashed with other Trump administration officials over limits on Nvidia’s advanced chip sales to Asia. Some officials and members of Congress say the Commerce Department has been too close to Nvidia and has not properly policed sales to China. The debate has drawn new attention after reports about Nvidia CEO Jensen Huang’s relationship with a woman and the company’s sales to Megaspeed. Supporters of chip sales say they help U.S. technology stay ahead, while China hawks warn that access could strengthen China’s AI and military capabilities.
Flitch adds AI tools for dealer quotes, inventory, and invoices
On November 13, 2026, Flitch announced new AI features for independent lumber and building material dealers. The software can turn customer messages and notes into draft quotes, suggest inventory purchases, and match vendor invoices with purchase orders and receipts. Sales teams must approve every quote, buyers can review the inventory suggestions, and accounting staff can check flagged invoice differences. Flitch says the tools reduce repetitive data entry while leaving decisions with employees.
Nvidia CEO Jensen Huang resigns amid affair and security concerns
Nvidia co-founder Jensen Huang resigned as CEO on Thursday, effective immediately. The article says the New York Times reported that U.S. intelligence agencies believed Huang had a close relationship with Alice Huang, who was feeding information to Beijing; the two are not related. Alice Huang was a top executive at a company, though the provided article text does not name it. Jensen Huang acknowledged the affair in a memo to employees.
Singapore regulator sets new AI risk rules for financial firms
The Monetary Authority of Singapore issued new guidelines on managing AI risks in the financial sector on October 7, 2027. The rules set out the regulator’s expectations for financial institutions to oversee their AI systems and manage related risks. The article says firms have until October 7, 2027, to implement the guidelines. MAS says it will provide support and training, work with firms on possible improvements, and review the guidelines regularly.
Lincoln City uses AI to turn customer conversations into sales
Lincoln City Football Club is working with Solgari, which is both a sponsor and supplier, to use AI in its sales work. The technology turns customer conversation data that the club had not captured before into useful sales information. The sales team can use that information to make data-based decisions. The club says this has increased sales and revenue.
Kutlerri.ai raises $4 million to grow its restaurant AI tools
Houston and Bhubaneswar-based Kutlerri.ai raised $4 million from Houston-based Narahari Investments. It will use the money to expand its AI Catering Sales Agent, launch three AI agents in beta testing, and build a mobile-first self-service app for restaurant operators. Co-founded by Kiran Rana and Payal Tripathy, the startup charges based on extra revenue generated or costs saved, rather than a fixed subscription. Its first product contacts potential catering customers within 30 miles through emails, texts, and calls. Kutlerri.ai says the agent helped RASA, a five-location restaurant group in the Washington DC region, earn $450,000 in extra catering revenue over 10 months, more than 10 times the service cost, without adding sales staff.
S1-Evo develops attacks that can change AI decision outcomes
Researchers propose S1-Evo, a framework that targets Typed System-1 decision models used in LLM agents for routing, moderation, and authorization. These models compare rules and options, and untrusted context can manipulate their outputs and change execution branches. S1-Evo creates evidence-based changes to untrusted fields while keeping facts unchanged, then uses feedback and verified examples to improve its attacks. Across four benchmarks and three S1 models, it reached a mean attack success rate of 71.99% and a high-confidence rate of 57.47% on jev-1.14. It also caused up to 24.00% end-to-end agent violations.
AI and infrastructure lead the week’s biggest funding rounds
Most of the largest announced U.S. startup funding rounds from Nov. 7 to 13, 2026, involved AI, though biotech, fintech, and enterprise software also appeared. Mirendil, which develops agentic AI for research and development, led with a $1 billion Series A. Mercor raised $750 million to connect AI developers with human experts. Crunchbase tracked the rounds in its database and noted that some reports may arrive late.
HSBC strategist says investors still underestimate AI
Willem Sels, HSBC’s global chief investment officer, said investors are underestimating artificial intelligence. He described AI as a general technology, like the internet, the wheel, or electricity, that can lead to many other innovations. Sels sets investment strategy and market outlook for HSBC’s private bank and retail wealth divisions. The article also notes that opposition to data centers can strengthen the case for AI infrastructure, according to a strategist.
Banks weigh customer control and rising costs as AI agents advance
Banks face two challenges as AI agents move from answering questions to taking action: confirming customers have authorized financial decisions and controlling the cost of the technology. Under U.K. Payment Services Regulations, banks must establish customer consent, while strong customer authentication remains a separate requirement. McKinsey surveyed 46,000 retail banking customers worldwide and found that 72% of AI users would let an agent perform one financial task, but would limit independent approvals to $500. Banks must also monitor agents for unusual payments and keep records that can help resolve disputes, while Reuters reported McKinsey’s warning that token costs could reach 20% of banks’ total labor costs. The U.K. Financial Conduct Authority is relying on existing rules rather than proposing AI-specific regulations, leaving banks to set clear limits and manage spending.
Sources
- Lutnick should have prevented the diversion of sensitive Nvidia AI chips to China, critics charge
- Lutnick Took a Softer Line on Nvidia as Calls for Tougher Controls Grew
- Flitch Expands Practical AI Capabilities for LBM: Quoting, Inventory, and Accounts Payable From: Flitch
- Nvidia CEO Jensen Huang resigns: What it means for AI and your money
- Singapore regulator tells financial firms to tighten AI oversight
- How Lincoln City Football Club is using AI to make all sales interactions high-scoring
- Kutlerri.ai raises $4 Mn from Narahari Investments to expand AI solutions for restaurants
- S1-Evo: Experience-Guided Evidence Competition Attacks on Typed System-1 Decision Models
- The Week’s 10 Biggest Funding Rounds: Agentic AI And Infrastructure Are Still On A Roll
- Investors are underestimating AI. But the real challenge is diversification, this strategist says.
- Banks Face Agentic AI’s Twin Tests: Customer Authority and Internal Costs
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