New turn in Nvidia spy scandal as Europe has no alternative
A Dutch lawmaker tells that Europe has no other supplier of AI chips, because chip design is almost fully American.
On 6 November 2026, a newspaper told that the spy agency of China recruited a customer executive to spy on Nvidia chief Jensen Huang.
Earlier: The New York Times says China recruited an executive to spy on Nvidia
Nvidia has an internal investigation into if its chief, Jensen Huang, was a target of a Chinese intelligence operation. Huang has told the public of an affair with a Chinese businesswoman. She is suspected to send information on US chips to Beijing. The German government and the European Commission gave no comment on Monday. A Dutch lawmaker tells that Europe has no alternative to the chips.
What is new
Nvidia investigates this in the company. Michael McCaul, a Republican lawmaker from Texas, wants the US to stop the shipment of advanced AI chips to China until the facts are known.
Europe has no exit
Bart Groothuis is a Dutch member of the European Parliament. He helped to negotiate the latest chip plan of the bloc. He tells Europe has no alternative and calls the position of Nvidia a “bizarre monopoly position”.
What is not known
The investigation has no result at this time. No proof and no numbers are given. A German government spokesperson did not comment on the media reports. The spokesperson said Germany keeps the highest standards when it makes agreements.
Insight: Europe cannot change supplier, so Nvidia sets the terms
On October 22, Huang told of a fee of about $2,000 a year for each GPU (an AI processor) for the agent software of Nvidia. A Dutch lawmaker tells that Europe has no alternative to Nvidia. This reads as a toll gate: when buyers cannot change seller, the seller can add fees, and US politics possibly set who gets the chips. For leaders: plan for cost and supply risk.
Sources
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