Nvidia CEO Jensen Huangs spy affair could spark Congress crackdown on AI export controls: Massive earthquake

Nvidia CEO Jensen Huang’s affair with an alleged Chinese spy has sparked fears of a major clampdown on the AI industry – pitting China hawks against those who warn that an overreaction will put the US at a disadvantage versus Beijing, The Post has learned.Lawmakers from both parties are scrutinizing past remarks from Jensen, who was the most influential voice pushing US officials to curb export controls on Nvidia chips — even as they assess whether his affair with Megaspeed executive Alice Huang compromised national security.Some DC sources believe the scandal will result in a bipartisan push for even stronger curbs on chip sales — with proponents concerned that Nvidia’s cutting-edge chips will fuel greater inroads into AI by Chinese companies.At the same time, some of them warn that ordering such a crackdown – for example banning a loophole allowing Chinese companies to rent access to Nvidia’s high-end hardware through data centers located in Southeast Asia – would play right into China’s hands, a source close to the situation said.“If they do that, it will just drive those foreign clouds to Huawei,” the source told The Post, referring to the Chinese telecom giant that is aggressively pursuing AI business.

“Ultimately, over time, those clouds will choose what’s available to them.It becomes an economic question – do you want foreign clouds to have American technology or Huawei technology?”Ousting Huang himself, the source added, would be a “massive earthquake” during a fragile moment for the AI sector, which is already facing questions on Wall Street over whether it’s a giant bubble ready to burst.“Nvidia is at the center of the AI buildout and he’s the central figure in the company,” the source said of Jensen Huang.That argument seems unlikely to satisfy key lawmakers who were already concerned about China gaining access to Nvidia’s best hardware – even before Huang’s embarrassing misstep.House Minority Leader Hake...