Nvidia chief admits spy affair, and AI chip supply is at risk

Jensen Huang, the chief of Nvidia, has told the public of an affair. The woman is suspected to be a Chinese spy. Experts tell The Verge that this can damage the AI industry of the US and its advantage against China. Nvidia shares are down since the news. Nvidia makes top AI chips, which are scarce.

What is at stake

Nvidia is one of a small number of companies that can make top AI chips. The US limits the sale of the most advanced chips to China. Experts say China could use access to Nvidia to speed up its work or slow US work.

The numbers

Companies linked to the woman, Alice Huang, reportedly enabled $7 billion or more of Nvidia chip sales to China. Alice Huang has no relation to Jensen Huang. Kilcrease, of a US think tank, says that with those chips the US advantage could vanish in weeks or months.

What is not known

It is not clear how the spy operation went. There is no public sign that Huang sent restricted chips to China or gave secret data. Kilcrease says the investigations will use much time of Nvidia staff. This could slow the supply of chips to AI labs.

Insight: One chip maker is a risk for all buyers

Nvidia is a gate that all AI builders must go through. Meta, Anthropic and OpenAI race to make their own chips. A Dutch lawmaker says Europe has no other chip supplier. This reads as a toll gate with one keeper: a problem there slows all buyers. Buyers with their own chips get more control. Look for a move by the US Congress to stop chip shipments to China.