Nvidia CEO resigns after scandal; critics say lax commerce leadership endangered U.S. security
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Jensen Huang resigned after admitting an affair with a woman U.S. officials identify as an alleged Chinese intelligence operative, while Commerce Secretary Howard Lutnick is drawing criticism for not enforcing export controls on Nvidia chips.
Nvidia's chief executive Jensen Huang resigned on Thursday after confirming an extramarital relationship with a woman identified by U.S. officials as an alleged Chinese intelligence operative. The relationship has raised serious alarm because the woman's firm, Megaspeed, is accused of diverting Nvidia's artificial-intelligence chips, which are restricted from sale to Chinese companies for national-security reasons.
U.S. officials have pointed out that the Department of Commerce, led by Secretary Howard Lutnick, did not enforce existing export controls that could have prevented the alleged smuggling of approximately $7 billion worth of Nvidia chips into China. Critics argue that this failure to act contributed to the broader controversy and may harm the United States' standing in the AI technology race.
The Chinese government has denied the espionage allegations. Both incidents have prompted calls for a review of export-control policies and leadership changes within the department.