It turned into a national security crisis!

As the crisis with US-based Nvidia, the world's most important chip manufacturer, grows, it has both turned into a national security incident for the US and fueled discussions about the future of artificial intelligence. Nvidia CEO Jensen Huang, who was revealed to have a relationship with Alice Huang, who is suspected of spying for China, resigned yesterday following the latest developments. The resignation came after a second extramarital affair allegation against Huang. The New York Times newspaper wrote that Huang had a relationship with someone else within the company, apart from Alice Huang. The news claimed that Huang was having an affair with Nvidia Vice President of Healthcare Kimberly Powell. It was stated that the Nvidia management organization was also considering dismissing Huang. While Huang's resignation caused a great shock, it was announced that Colette Kress was appointed as the interim CEO.

security crisis

However, while the Nvidia crisis revealed the competition between the USA and China regarding artificial intelligence, it also revealed how China can resort to obtaining the chips required for artificial intelligence. As a matter of fact, the growing espionage scandal around Nvidia has reached the White House. According to The New York Times, US President Donald Trump was warned months ago about Nvidia CEO Huang's relationship with Alice Huang, who is suspected of having ties to Chinese intelligence. This made Trump's statements that he was not aware of the intelligence allegations in question controversial. According to Axios' news, based on 6 high-level sources, there were also differences of opinion in the Trump administration regarding limiting chip exports to China. Sources argued that Trump approved taking measures against companies suspected of diverting Nvidia chips to China for the third time this year, but Commerce Secretary Howard Lutnick opposed the implementation of these restrictions.

As the incident turned into a national security crisis, Democratic senators called for the protection of Nvidia's records. Meanwhile, it was reported that Jensen Huang agreed to testify in the closed session of Congress where threats to the national security of the United States will be discussed.

Trump's candidate Cook

US President Trump stated that Apple Chairman Tim Cook should replace Nvidia CEO Jensen Huang, who resigned. Trump said, "Huang has done great things. Now that Huang has resigned, there is only one person who can replace him, Apple's Tim Cook. One legend is replaced by another."

Did they send it to China?

According to Bloomberg, Chinese spy Alice Huang is currently in Beijing. Bloomberg's report cited "familiar" sources who wished to remain anonymous. Meanwhile, Taiwan revoked Alice Huang's entry permit. It is alleged that the Singapore-based technology company Megaspeed, of which Huang is the manager, is in cooperation with China and illegally sends the chips produced by Nvidia to China. There was close cooperation between Nvidia and Megaspeed.

Chip wars between USA and China!

Access to advanced computer chips has become a major battleground between Beijing and Washington. Chips produced by Nvidia enable artificial intelligence systems to work. For this reason, the company is one of the most important actors in the ongoing competition between the USA and China for technology leadership. The Trump administration, with the encouragement of CEO Jensen Huang, decided to allow the sale of advanced Nvidia H200 chips to China last year. However, after the recent events, Washington's attitude is a matter of curiosity. A harsh warning came from China regarding the issue. China's Foreign Ministry has warned that espionage allegations should not be a reason for the US to re-imposed restrictions on technological sales to China. Chinese President Xi Jinping is expected to host US President Donald Trump in his country next week. China announced that it is ready to work with the USA.

Musk became a bidder!