Nvidia Faces More Hostile Washington as Trump May Struggle to Protect Chipmaker

Nvidia Chief Executive Jensen Huang's close relationship with President Donald Trump may offer limited protection as the company faces growing scrutiny from both Democrats and Republicans in Washington over its business dealings, artificial intelligence technology and chip exports to China, Ashley Gold reported for Semafor.

Nvidia CEO Jensen Huang faces increased scrutiny from US lawmakers over the company's business dealings, China chip exports and national security concerns. [Photo: NVIDIA]

Democrats are preparing to take control of key congressional committees following their midterm victories, while some Republicans are pushing for tougher restrictions on advanced technology exports to China.

The political pressure has intensified after three Republican House committee chairmen requested a closed-door briefing with Huang over allegations involving a Chinese businesswoman suspected of passing information to Beijing.

In a letter dated November 4, House Foreign Affairs Committee Chairman Brian Mast, House Select Committee on China Chairman John Moolenaar and House Intelligence Committee Chairman Rick Crawford asked Huang to brief them on November 18.

The request followed reports that US authorities were investigating Alice Huang, a former executive of Singapore-based company Megaspeed, which purchases advanced AI chips from Nvidia.

The New York Times previously reported that investigators were examining allegations involving her relationship with Jensen Huang and possible transfers of sensitive information to China.

Nvidia has disputed suggestions that its dealings with customers in Asia involved the sharing of sensitive company information or national security material.

“We're confident that if the US government believes that any person is a threat to American industry, it would let us know,” Nvidia spokesman John Rizzo told Semafor.

“We often receive updates from the US government regarding parties and entities of concern and always act accordingly.”

The company has also said that Huang meets with thousands of customer executives each year and that ordinary business interactions with regional cloud customers do not involve sensitive Nvidia trade secrets.

Meanwhile, lawmakers could seek to include additional export-control measures in a major defense authorization bill before the end of the current congressional session.

Such provisions could further restrict sales of advanced US chips to China.

The prospect of stricter controls could gain momentum when the new Congress convenes.

Sen. Elizabeth Warren, a Massachusetts Democrat and the current ranking member of the Senate Banking Committee, is expected to become its chair after Democrats take control of the Senate.

Warren has previously called for greater congressional scrutiny of Nvidia's business arrangements and its sales of advanced chips to China.

Trump could therefore face competing political pressures as he weighs his relationship with Huang against demands from lawmakers for tougher oversight of the semiconductor industry.