The Nvidia scandal is heightening America’s AI rivalry with China ahead of Trump’s visit

HONG KONG (AP) — Before rumors surfaced that former Nvidia CEO Jensen Huang was involved with a Chinese spy, his company's advanced chips were already crucial to the U.S.-China competition for artificial intelligence supremacy.

The controversy surrounding Huang could further inflame that rivalry as President Donald Trump prepares to meet with Chinese President Xi Jinping in China. Congressional lawmakers on both sides of the aisle are using the affair to push for stricter limits on technology exports to safeguard America's technological edge.

Lian Jye Su, a technology analyst, noted that the scandal ties together concerns over national security, export controls, and foreign policy. U.S. restrictions have limited China's access to the world's most advanced AI chips, a policy that has led Beijing to accuse the U.S. of seeking AI dominance.

As sales to China have dropped significantly due to these export restrictions, U.S. officials have been emphasizing Huang's role in the AI boom he has championed. Huang has been in regular contact with Trump during his second term, further strengthening his image as a key figure in the AI race.

Supporters of stronger export controls now have a new argument, with lawmakers demanding an immediate halt to the export of advanced AI chips to China. While Beijing has dismissed the spy allegations as unsubstantiated, the scandal has given lawmakers a face to their push for tighter technology restrictions.