US senators warn NVIDIA CEO against upcoming trip to China
What's the story
A bipartisan duo of US senators has warned Jensen Huang, CEO of NVIDIA, against his upcoming trip to China. The letter, penned by Republican Senator Jim Banks and Democratic Senator Elizabeth Warren, cautioned Huang not to meet companies suspected of violating US chip export controls. They also advised him against engaging with representatives from firms collaborating with the People's Republic of China (PRC)'s military or intelligence agencies. Huang has also met with US President Donald Trump, days before his trip.
Legitimization worries
Concerns regarding Huang's trip
The senators expressed their concerns that Huang's trip could legitimize companies closely working with the Chinese military or discussing exploitable gaps in US export controls. An NVIDIA spokesperson defended the company's position, saying "American wins" when its technology sets "the global standard." The spokesperson also noted China's large pool of software developers and said AI software "should run best on the US technology stack, encouraging nations worldwide to choose America."
Export controls
NVIDIA expects $15 billion hit from US export controls
In April, the US imposed restrictions on AI chips that NVIDIA modified to comply with export controls to China. Huang had said these restrictions would reduce NVIDIA's revenue by $15 billion. The senators noted a bipartisan consensus now exists over the free export of advanced AI hardware, which could potentially accelerate China's military modernization efforts.
Legislative action
Lawmakers propose law requiring chip companies to verify product location
US lawmakers have become increasingly alarmed by attempts to circumvent export controls to China. They have proposed a law requiring AI chip companies to verify the location of their products. Last month, Reuters reported that DeepSeek, an AI firm, is supporting China's military and intelligence operations while trying to use shell companies to bypass US AI chip export controls.
Expansion plans
NVIDIA planning to launch cheaper AI chips for China
The senators also highlighted their concerns that NVIDIA's activities could bolster China's AI and chip industries. They pointed to the company's new research facility in Shanghai as an example. Despite these concerns, NVIDIA is reportedly planning to launch a cheaper version of its flagship Blackwell AI chips for China, Reuters reported in May.