Nvidia CEO resigns amid scandal; Commerce secretary faces criticism over export controls
Jensen Huang stepped down as Nvidia's chief executive after acknowledging an affair with a woman alleged to be a Chinese intelligence operative, while Howard Lutnick, the U.S. secretary of commerce, has been criticized for not enforcing export restrictions 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 concerns 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 highlighted 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 the lack of enforcement contributed to the broader controversy and may affect the United States' position 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.