China Says US Using Nvidia Spy Drama To Justify Chip 'Blockade' As Jensen's Future Hanging By Thread

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China Says US Using Nvidia Spy Drama To Justify Chip 'Blockade' As Jensen's Future Hanging By Thread Nvidia sits at the center of the whole circular AI financing scheme. The…

Nvidia sits at the center of the whole circular AI financing scheme. The leadership crisis at the chip giant is deepening as successive reports about CEO Jensen Huang's extramarital affairs continued overnight.

Huang recently acknowledged an extramarital affair with a woman reportedly suspected by US officials of working for Chinese intelligence. A separate report overnight alleged a romantic relationship with Nvidia executive Kimberly Powell.

Shares plunged about 7.5% in premarket trading as the Nvidia board weighs Huang's fate.

China accused Washington earlier today of using spy allegations against Huang as a pretext to tighten restrictions on Chinese access to advanced AI chips.

Foreign Ministry spokeswoman Mao Ning urged US officials to stop fabricating "spy" narratives to justify a technological "blockade."

Beijing has rejected those allegations as "groundless speculation" and an attempt to smear China.

The spy allegations center on Alice Huang, a former executive at Singapore-based Megaspeed whom US officials reportedly suspect of working as a spy for Beijing.

Meanwhile, Commerce Secretary Howard Lutnick has been caught in the crossfire over his department's reluctance to designate Nvidia customer Megaspeed as a potential national security threat, CNN reported.

The report also highlights divisions within the Trump administration over Chinese access to advanced Nvidia chips. US officials have suspected Megaspeed of circumventing export restrictions through shell companies to funnel advanced US chips into China.

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