The espionage scandal at chip manufacturer Nvidia reaches the US government. Trade Minister Lutnick is expected to explain to a committee why he did not control chip exports more strictly.
US Secretary of Commerce Howard Lutnick: Resignation after the Nvidia scandal? Photo: REUTERS
Washington. The US Senate Banking Committee has summoned former CEO Jensen Huang and US Secretary of Commerce Howard Lutnick to a hearing in the espionage scandal involving US chip company Nvidia. The committee chairman, Tim Scott, now threatened Huang with a compulsory subpoena if he did not testify voluntarily.
“Recent reports raise serious concerns about our national security and the protection of sensitive US technology,” Scott wrote on Thursday (local time) on the short message platform Otherwise there would be a risk of compulsory summonses.
US President Donald Trump personally intervened in the debate. According to a report in the New York Times newspaper, he spoke to Huang on the phone on Tuesday before resigning and urged him to fight for his job.
Trump made his stance dependent on the ongoing investigation in a podcast interview published on Thursday (local time): "The big question is, was the woman a spy? And I don't know if that's been settled yet. But if the woman was a spy, yes. If the woman wasn't a spy, maybe it would be different."
US Attorney General Todd Blanche confirmed that the FBI was reviewing the reports. However, the ministry has not yet come to a conclusion as to whether Chinese businesswoman Alice Huang was actually spying for the government in Beijing.
Congress wants more export controls on chips
In addition, a bipartisan majority is forming in Congress for stricter export controls of state-of-the-art AI chips to China. According to House of Representatives Chairman Mike Johnson, export controls on chips to China are a big issue right now. He supports restricting the People's Republic's access.
Republicans are seeking to tie new export restrictions on AI chips to the annual defense budget. At least four bills on chip exports have also gained momentum since Monday. Fearing such restrictions, Chinese AI companies are trying to rent foreign computing capacity with Nvidia chips.
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The Senate's subpoena also puts US Commerce Secretary Lutnick in a difficult position. According to insiders, senior government officials are discussing in the White House whether the minister should be pressured to resign.
He is accused of failing to put dozens of Chinese companies on a key trade blacklist and failing to adequately monitor Nvidia exports to China. The House of Representatives, along with the Senate, is also trying to get Huang to testify before November 26th.
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Nvidia boss admits affair and resigns
Nvidia boss Jensen Huang resigned from his position after reports of a romantic relationship with Chinese businesswoman Alice Huang became public. Jensen Huang himself admitted the affair on November 8th.
The US authorities suspect the businesswoman of spying for the Chinese government. She worked as an executive at Megaspeed, an Nvidia partner company that the US government believes helped China procure AI chips. According to insiders, Huang apparently had another intimate relationship with an employee of his company. The government in Beijing rejects the espionage allegations.
More: This is how politics and business react to Huang's resignation
