Nvidia spy allegations push Congress toward stricter AI chip export laws

Congress is more likely to pass legislation tightening China's access to AI chips following reports that Nvidia CEO Jensen Huang had a relationship with a suspected Chinese intelligence agent, lawmakers and advocates said. Three chip-related measures are slated for possible inclusion in the fiscal year 2027 defense authorization bill, including the AI Overwatch Act, Chip Security Act, and Match Act. Nvidia is considered the biggest opponent of two of these bills, having previously argued that chip smuggling did not occur. Democratic Senator Elizabeth Warren and Republican Senator Jim Banks said Huang's relationship makes national security concerns "even more urgent," urging passage of the bills. The White House has not commented, while the Information Technology Industry Council, which includes Nvidia, opposes the measures, arguing they could undermine US competitiveness.