US-China AI rivalry intensifies ahead of Trump-Xi meeting after Nvidia scandal

The Nvidia scandal involving former CEO Jensen Huang and a suspected Chinese spy is intensifying the US-China AI rivalry ahead of President Donald Trump's meeting with Chinese President Xi Jinping next week. Lawmakers from both parties are using the affair to push for tighter technology export restrictions. The affair has become a rallying point for supporters of stronger export controls, who now have a concrete story to support their arguments. Congressional Democrats have demanded an immediate halt to advanced AI chip exports to China, while a Senate defense bill proposes reviewing licenses and tracking chips. Beijing has warned against using the episode as a pretext for new restrictions. The scandal could disrupt US-China AI safety talks and add urgency to China's domestic chip industry efforts. While US companies pursue AI frontiers with cutting-edge chips, China is closing the gap through open-source models and domestic alternatives, though Nvidia chips remain crucial for many Chinese firms.