Former CEO Jensen Huang and Nvidia have become targets of the U.S. Congress. [Photo: Shutterstock]

Shortly after Jensen Huang (젠슨 황) resigned, the U.S. Congress began an investigation into Nvidia and the former CEO over national security and semiconductor export controls to China. On Nov. 13, CNBC reported that Congress is examining how Huang’s relationship with a person suspected of being a Chinese spy affected U.S. artificial intelligence leadership and national security.

Huang resigned on Nov. 13 after his relationship became known with Alice Huang (앨리스 황), an executive at Singapore technology company Megaspeed who is suspected of being a Chinese spy. Congress is also looking into allegations that Megaspeed smuggled restricted Nvidia chips into China and what role the Commerce Department’s Bureau of Industry and Security (BIS) played in the process.

Republicans moved quickly to prepare hearings. Senate Banking Committee Chairman Tim Scott demanded that Huang and Commerce Secretary Howard Lutnick appear before the committee in December and said subpoenas would be issued if they do not comply. House Foreign Affairs Committee Chairman Brian Mast also said Huang agreed to appear before a House committee in the coming weeks. He said he is pushing for an appearance before Thanksgiving and would issue a subpoena if Huang does not comply.

Democrats are also poised to take up the Nvidia issue in earnest after becoming the majority party in both chambers in January next year. Senate Democratic Leader Chuck Schumer said Congress should demand answers on whether Huang and Nvidia officials put U.S. national security at risk. Elizabeth Warren, who is being mentioned as the next chair of the Senate Banking Committee, also said Huang, Nvidia’s management and board must still answer to Congress on whether they complied with export controls.

The controversy has also spread to the Trump administration. Lutnick is being criticised following reports that he delayed enforcement against indirect shipments of Nvidia chips to China. The Commerce Department said Lutnick agreed to appear voluntarily before the Senate Banking Committee. Warren and Chris Coons asked Lutnick, Secretary of State Marco Rubio and White House chief of staff Stephen Miller to preserve documents and communications records related to Nvidia’s exports of advanced AI chips to China.

Nvidia’s internal response has also come under scrutiny. Nvidia general counsel Tim Teter said in an email sent to Commerce Department investigators that he contacted BIS chief Jeffrey Kessler regarding the Megaspeed investigation. The Commerce Department’s investigation into Megaspeed was later transferred to the Justice Department.

Huang had been viewed as a figure who represented the AI industry in Washington. He also repeatedly opposed export controls to China publicly, drawing resentment from some lawmakers.

The issue is having a major impact because AI semiconductor export controls and national security reviews have collided head-on, rather than because of Nvidia’s leadership vacuum itself. It also showed that U.S. political circles have begun placing Nvidia at the centre and verifying the administration’s response as well.

Keyword

#Nvidia #CNBC #Megaspeed #Bureau of Industry and Security #U.S. Commerce Department
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