NVIDIA's separation from Jensen Huang has just begun to stir up waves in Washington
CNBC
2h ago
Ai Focus
Jensen Huang has resigned from NVIDIA, but amid concerns regarding his relationship with a woman alleged to be a Chinese spy, as well as doubts about NVIDIA's exports to China and their impact on U.S. national security, Washington is preparing to launch multiple investigations. Members of both the Republican and Democratic parties are pushing for Jensen Huang, NVIDIA executives, and Secretary of Commerce Lutnick to testify.
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Jensen Huang has already left NVIDIA, but Washington has just begun to deal with him and the company he co-founded.

Jensen Huang, who always wears a leather jacket and is also the CEO of one of the world's most important chip manufacturers, resigned from NVIDIA on Thursday. Previously, there were reports that he had an extramarital affair with a woman suspected of being a Chinese spy. However, this espionage scandal continues to escalate in Washington, with lawmakers preparing to launch an investigation to examine how this relationship may undermine the United States' dominance in the field of artificial intelligence, what national security implications it involves, and the close ties between this executive and U.S. President Donald Trump and his cabinet.

Republicans will take the lead in the next six weeks, which is the final period during which they will continue to control both chambers of Congress. Republican leaders have immediately summoned Jensen Huang to Capitol Hill and stated that if he refuses to attend, a subpoena will be issued. By January, Democrats will take over the U.S. House of Representatives and Senate, and they are already eager to make their mark on the oversight investigations.

Senate Majority Leader John Thune ( John Thune, a Republican from South Dakota) told reporters in the Capitol on Thursday, "In the current environment, there are indeed high risks when it comes to national security. I expect there to be follow-up actions, yes."

Jensen Huang, as well as a woman reportedly associated with him, Alice Huang ( Alice Huang ), an executive at the Singapore-based technology company Megaspeed, and a Chinese spy accused of espionage have all drawn the attention of Congress. Meanwhile, Commerce Secretary Howard Lutnick has also come under criticism, as reports this week indicated that he may have obstructed President Trump's efforts to take action against companies that transferred NVIDIA chips to China.

Some members of Congress have also called for an investigation into the role of the Bureau of Industry and Security ( BIS ), which is under the Department of Commerce and responsible for managing and enforcing export controls, in the Jensen Huang incident.

The New York Times reported on Monday that Tim Tate, NVIDIA's chief legal counsel, stated in emails sent to the company where Alice Huang works and reviewing her communications with the Department of Commerce, that he had maintained contact with Jeffrey Kessler, the person in charge of BIS. Subsequently, the investigation into Megaspeed was transferred to the Department of Justice. Megaspeed is accused of smuggling restricted chips to China.

By late Thursday, Tim Scott ( Tim Scott ), the chairman of the Senate Banking Committee and a Republican senator from South Carolina, had summoned Jensen Huang and Lutnick to testify before his committee in December. Kristen Eichhorn ( Kristen Eichamer ), a spokesperson for the Department of Commerce, subsequently stated in a statement that Lutnick "has voluntarily agreed to appear before the Banking Committee to answer their questions."

Scott threatened that if Jensen Huang did not attend, a subpoena would be issued against him. A spokesperson for the Senate Banking Committee did not respond immediately when asked on Friday morning whether they had received a response from Jensen Huang.

Scott wrote, "The latest reports raise serious concerns about our national security and the protection of sensitive American technology. The American people have a right to know the answers."

And as the Democratic Party is expected to take control of both chambers in January, this close relationship between the tech giant and the White House will add fuel to an already heated situation, as the new majority party is preparing to launch a number of investigations into the Trump administration.

Chuck Schumer, the leader of the Senate's minority party ( Chuck Schumer, a Democrat from New York State), posted on X on Thursday: "Congress must demand that Mr. Jensen Huang and others at NVIDIA explain how they could have put U.S. national security at risk." Schumer is in a fiercely competitive race to become the leader of the Senate's majority party in the next Congress.

The senators who will lead these investigations and have the power to issue subpoenas in the new congress are already preparing for NVIDIA to become the focus of attention.

Elizabeth Warren, a Democratic senator from Massachusetts who is likely to succeed as the chair of the Senate Banking Committee, stated on Thursday: "Mr. Jensen Huang, NVIDIA's executives, and NVIDIA's board of directors still owe Congress an explanation regarding whether the company complies with U.S. export controls."

Warren and Senator Chris Coons ( Chris Coons, a Democrat from Delaware) – a senior Democrat responsible for East Asia and Pacific affairs on the Senate Foreign Relations Subcommittee – wrote to Lutnick, Secretary of State Marco Rubio, and White House Chief of Staff Stephen Miller on Wednesday, requesting them to retain all documents and communication records related to NVIDIA's export of “advanced AI chips” to China or entities that may transfer these chips to China.

Even before the Democrats took control of Congress in January, it was expected that Jensen Huang would appear before Congress.

Brian Mast, the chairman of the House Foreign Affairs Committee ( Brian Mast, a Republican from Florida), is actively negotiating to ensure that Jensen Huang testifies before various committees of the House. He told reporters on Thursday that the CEO of NVIDIA has agreed to appear in the coming weeks.

Master said that the details of the testimony are still being finalized. The testimony is likely to involve the committee he belongs to, as well as the House Intelligence Committee and the House Select Committee on China, and will be conducted under oath and documented in writing. It is not yet clear whether this testimony will be made public.

Master said to the reporters, "We hope he will come within about a week... the sooner the better." He added that he believes it will happen before Thanksgiving.

If Jensen Huang is unwilling to attend, Master said he would issue a subpoena.

Master, along with the Chairman of the House of Representatives Select Committee on China Issues and Republican Representative John Mullenar from Michigan ( John Moolenaar ), as well as the Chairman of the House Intelligence Committee, Rick Crawford ( Rick Crawford , a Republican from Arkansas ), made a second request to Jensen Huang and Tate on Thursday, asking them to attend and to respond by 8 p.m. Eastern Time on Friday. Master also made a second request to Kessler.

Josh Gottheimer, a member of the House Intelligence Committee and a Democratic representative from New Jersey ( Josh Gottheimer ), stated on Friday in the CNBC program The Exchange that he hopes to seek answers from Jensen Huang regarding the national security and export implications of this incident.

Gottheimer said, "From the perspective of the Intelligence Committee, you can imagine how important this is for our national security and critical infrastructure from the standpoint of artificial intelligence; and in terms of chip policy, what exactly has made its way to China... Megaspeed Has any chips been transferred?"

On the very day of his resignation, there were calls for an immediate investigation into Jensen Huang and NVIDIA, marking a dramatic downfall for this former CEO within the corridors of power. Jensen Huang was once one of Washington's most effective advocates for the artificial intelligence industry; he was able to leverage his relationship with Trump as well as to defend the industry before legislators, responding to concerns about the risks associated with artificial intelligence.

A senior Democratic Party staff member who was granted anonymity to describe their private meeting with Jensen Huang told CNBC: “He’s always that TED type of orator.”

This staff member said, 'He is very outstanding, articulate, and also adept at explaining why artificial intelligence is so important, as well as why it is crucial for the United States to remain a leader in this field.'

This staff member stated that Jensen Huang is a "happy fighter" in the field of artificial intelligence; during meetings with legislators, he often stays longer than scheduled and answers more questions. However, this assistant mentioned that during the meetings with legislators they attended, Jensen Huang did not strongly oppose export controls, nor did he go into such detailed specifics as to truly "lobby on behalf of the legislators one-sidedly."

Jensen Huang has previously publicly opposed export controls on multiple occasions, which has displeased some members of parliament.

Even though he is about to face the inevitable intense scrutiny on Capitol Hill, some members of Congress still express regret over the loss of Jensen Huang.

Pennsylvania Democratic Senator John Feitman ( John Fetterman ) said, "Overall, this is really sad."

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