Jensen Huang controversy triggers fresh US push to block advanced AI chip exports to China — Report
US lawmakers are stepping up efforts to restrict the export of advanced artificial intelligence (AI) chips to China, with allegations surrounding Nvidia founder Jensen Huang adding fresh momentum to a bipartisan push for tighter controls, the Financial Times reported.
Democrats and Republicans are reportedly backing a series of legislative proposals aimed at curbing overseas sales of sensitive semiconductor technology and giving Congress greater powers to review and potentially block export deals already approved by the Donald Trump administration.
The renewed push comes amid controversy surrounding Huang, who had extramarital affairs, including with a woman suspected of working for Chinese intelligence. The woman, Alice Huang, was an executive at Singapore-based Megaspeed, an Nvidia customer that has been under US investigation for more than a year over suspected chip smuggling to China, according to the FT.
"There’s absolutely increased momentum for this legislation in light of the recent scandal," FT quoted Owen Tedford, a senior research analyst at Washington-based Beacon Research, as saying.
"Nvidia may feel like they’re done or trying to move on, but Washington is not ready to move on," Tedford added.
Huang had previously pushed for easing restrictions on advanced AI chip exports.
Several bills under consideration in Congress seek to tighten restrictions on the overseas sale and use of advanced AI chips.
One of the proposals, the Remote Access Security Act, seeks to prevent Chinese companies from remotely accessing advanced chips located overseas through cloud computing services, even when those companies are prohibited from purchasing the physical hardware, the news outlet said.
The proposed legislation is aimed at closing a potential loophole in existing US export controls, which restrict the direct sale of certain advanced chips to Chinese entities but may not adequately address access through overseas computing infrastructure.
Supporters of tighter export controls reportedly argue that restricting China's access to this technology is critical to preserving America's technological and national security advantages.
Three senior Republican lawmakers have called for immediate action on legislation aimed at strengthening congressional oversight of advanced semiconductor exports.
John Moolenaar, Brian Mast and Rick Crawford, who chair House committees overseeing China, foreign affairs and intelligence, respectively, wrote to Huang, Nvidia General Counsel Tim Teter and Jeffrey Kessler, the Commerce Department official overseeing export controls.
They requested, as per the report, that the three appear before Congress to explain the circumstances surrounding the chip exports and the potential national security implications.
"We need to know the full extent to which our national security has been put at risk," the lawmakers wrote.
They also argued that the controversy demonstrated why Congress needed to pass four bills aimed at strengthening oversight of sensitive technology exports.
The lawmakers' intervention comes as questions mount over how Nvidia chips were allowed to reach Megaspeed despite concerns about the company's alleged involvement in diverting advanced semiconductors to China.
The proposed restrictions could gain a significant legislative boost if lawmakers attach them to the annual National Defense Authorization Act (NDAA).
The NDAA is a major piece of legislation that authorises funding and policy priorities for the US Department of Defense. It is considered a must-pass bill, making it a potentially effective vehicle for incorporating other legislative measures.
According to the FT, several of the proposed chip export restrictions have received support from outgoing House Speaker Mike Johnson and Hakeem Jeffries, who is seen as his likely successor.
Lawmakers are reportedly negotiating the final version of the annual defence legislation, with the possibility of incorporating the new export-control measures into the package.
The current Republican-majority Congress is expected to consider the NDAA before lawmakers elected in the November midterm elections take their seats in January.
The renewed congressional push has also placed Commerce Secretary Howard Lutnick under pressure to explain how Nvidia was allowed to sell chips to Megaspeed.
Under US export-control rules, American companies need licences from the Commerce Department to export certain goods to entities included on the government's so-called Entity List.
The controversy has raised questions about the effectiveness of the existing licensing and enforcement framework, particularly when it comes to preventing advanced AI chips from being diverted to restricted destinations.
Lawmakers are seeking greater oversight of export approvals, including the ability to examine and potentially block transactions that have already received administration clearance.
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