US lawmakers push tougher AI chip export curbs on China after Nvidia-Jensen Huang scandal

US lawmakers are accelerating efforts to tighten export restrictions on advanced artificial intelligence (AI) chips destined for China in the wake of the Nvidia-Jensen Huang scandal. Both Democrats and Republicans are backing several proposed bills aimed at making it more difficult for sensitive US-made AI chips to reach China and other countries.

The legislation would also empower the US Congress to review chip export approvals and potentially halt deals that had already cleared previous administration approvals, according to The Financial Times. The political fallout from Nvidia has heightened pressure on lawmakers to strengthen export rules. The scandal gained traction after questions arose about how Nvidia chips reached Singapore-based company Megaspeed, which is suspected of assisting in moving chips to China.

Nvidia CEO Jensen Huang, who had previously advocated for looser export rules to boost sales of his company's advanced AI chips overseas, resigned earlier this week amid allegations of extramarital affairs, including one with a woman suspected of having ties to Chinese intelligence, reported The Financial Times. The woman, Alice Huang, is alleged to have worked for Megaspeed and is suspected of being a Chinese intelligence agent.

US authorities have been probing Megaspeed for over a year due to suspicions that the company was smuggling Nvidia chips to China. This controversy has underscored concerns about the adequacy of existing export controls to prevent advanced technology from reaching China. Lawmakers are now demanding enhanced scrutiny of companies and the flow of AI chips.

Beacon Research senior analyst Owen Tedford said the Nvidia scandal has injected new impetus into proposed legislation in Congress. One bill, the Remote Access Security Act, seeks to prevent Chinese companies from accessing advanced AI chips through cloud computing services, even when they are not legally permitted to purchase the physical chips.

Three senior Republican lawmakers urged Congress to swiftly pass several bills aimed at tightening AI chip export restrictions, including John Moolenaar, Brian Mast, and Rick Crawford, who head House committees on China, foreign affairs, and intelligence, respectively. They requested that Nvidia executives Jensen Huang, Tim Teter, and Jeffrey Kessler appear before Congress to discuss the matter.

The proposed restrictions have garnered support from key political figures, including outgoing House Speaker Mike Johnson and incoming House Speaker-designate Hakeem Jeffries. The AI chip export restrictions are expected to be incorporated into the National Defense Authorization Act (NDAA), a crucial annual bill that funds the US Department of Defense.