Nvidia spy allegations likely to spur laws to tighten China's access to AI chips
NEW YORK: Congress is more likely to pass legislation aimed at tightening China's access to AI chips following news that Nvidia CEO Jensen Huang had a relationship with a suspected Chinese intelligence agent, lawmakers and advocates said.
Congress is likely to pass legislation to tighten China's access to AI chips following allegations that Nvidia CEO Jensen Huang had a relationship with a suspected Chinese intelligence agent, according to lawmakers and advocates. Three chip-related measures are being considered for inclusion in the fiscal year 2027 defence authorisation bill, which began in October.
The AI Overwatch Act, Chip Security Act, and Match Act aim to control advanced chip exports, track chip shipments to prevent smuggling, and push US allies to restrict chipmaking equipment exports to China, respectively. Nvidia opposes the Chip Security and AI Overwatch acts, arguing there was no chip smuggling until the DOJ brought indictments last year.
The House Foreign Affairs Committee has already approved all three bills, which are now in the Senate management package. Democratic Senator Elizabeth Warren and Republican Jim Banks emphasized the urgency of passing these bills, stating that Huang's relationship with a suspected spy makes the national security concerns even more pressing.
The senators previously urged the Department of Commerce to suspend Nvidia's export licences to China and conduct a full security review. Democratic Representative Bill Foster also introduced the Chip Security Act, which passed unanimously in the House. The Information Technology Industry Council, which includes Nvidia, opposes the measures, arguing they could harm US competitiveness and complicate export control policies.
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