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BackEditorial: The price of dependency
Editorial: The price of dependency
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Handelsblatt11 minutes agoBusiness1 min readGermanyView original

Editorial: The price of dependency

Quick Look

The case surrounding Nvidia boss Jensen Huang and his relationship with a manager who is said to work for China's secret service reveals serious security risks and a lack of judgment at the top of a tech giant.

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Why It Matters

Jensen Huang is CEO of Nvidia, a key AI development infrastructure company.

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There are lessons that can be avoided and lessons that are better left alone. The Jensen Huang case is an example of both.

The first lesson is quickly told. Anyone who builds part of the infrastructure for the most important technological revolution of this century, i.e. chips without which the most powerful AI models cannot be trained, will become a target. Huang is at the epicenter of a development that could have more momentous consequences than the invention of the atomic bomb.

It doesn't take much imagination to think that foreign powers and their services would be interested in such a man. Even during the Cold War, every businessman or politician knew what to do if a stranger with a Russian accent spoke to him in the bar in the evening: order a quick drink of water and then go home.

Huang didn't go. He got involved with a manager whose previously completely unknown company buys Nvidia chips and who, according to American secret services, works for China's Ministry of State Security. This reflects incomprehensibly poor judgment from a manager who built one of the most successful technology companies in history. This relationship with a customer's manager is already a conflict of interest and would have been enough for him to resign.

Open Questions

  • What consequences does Nvidia draw from the allegations?
  • Has confidential data been leaked?

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This article was originally published by Handelsblatt.

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