Jen-Hsun Huang’s fraud, Congressman calls on Nvidia to suspend chip sales, analysts lament bad timing

business insider report,Jen-Hsun Huang After admitting to having an extramarital affair with a woman suspected of spying for China, the board of directors of Nvidia (also known as Nvidia) announced the launch of an independent investigation on the same day, causing a sensation. Hedge fund tycoon Aikman called on the outside world to support Huang and his family, while other scholars and members of Congress called for tightening chip export controls and even suspending shipments of advanced AI chips to China. Analysts said the timing of the incident was “very bad”, but Huida’s share price ultimately depends on investor sentiment and chip demand.

In a letter to employees on the 8th, Jen-Hsun Huang admitted that he had cheated on his wife and children, but the woman’s name was not disclosed in the letter. The New York Times reported that this woman is Alice Huang, a senior executive of Singapore data center company MegaSpeed. He was recruited by China’s Ministry of State Security and targeted Huang Renxun. Her mission was to gather intelligence and also try to persuade the United States to relax restrictions on the sale of Huida’s advanced chips.

Bill Ackman, CEO of Pershing Square Capital Management, posted a message on the social platform X on the 8th, calling on the outside world to be sympathetic. He wrote: “As a reminder, Huang Renxun is also a human being, and he is a great person. Even great people make mistakes.” He emphasized that the outside world should support Huang Renxun and his family.

However, Chris McGuire, a senior fellow at the Council on Foreign Relations, believes that the US Commerce Department is also responsible for the national security threat involved in this incident, saying that policies implemented by the Commerce Department allowed China to easily obtain Huida’s most advanced chips.

McGuire released an article raising the question: “Senior officials at the Commerce Department clearly know that Huang Jensen has sexual relations with Chinese spies and that MegaSpeed ​​is China’s leading company, but they still actively oppose any policy to tighten export controls on Huida chips. Why?”

He explained that when the Commerce Department learned that MegaSpeed ​​was run by Chinese spies, it could have stopped shipments of chips to the company, but failed to act. He criticized the Commerce Department’s refusal to enforce existing rules that require exporters to apply for licenses before shipping large quantities of AI chips to untrusted entities in many countries. These rules would prevent China from purchasing chips controlled through shell companies like MegaSpeed. He called on HUIDA to take national security issues more seriously and the Ministry of Commerce should also tighten export controls.

Commonwealth of TexasRepresentative Michael McCaul advocated that the United States should immediately suspend shipments of advanced AI chips to China until “this incident is fully investigated and national security is not compromised.” they wrote

Ross Gerber, chairman and CEO of Gerber Kawasaki Wealth & Investment Management, also said

Philip Wool, an analyst at Reliance Global Consulting, said in an interview with US financial media CNBC that the timing of the event was “very bad” and added another risk consideration for investors. However, he is not worried that this incident will cause big problems for Huida, believing that the stock price ultimately depends on investor sentiment and chip demand.

In January this year, the US government allowed Huida’s AI chip H200 to be exported to China. Mainland companies such as Tencent, ByteDance and Alibaba have placed orders for purchase. However, in order to protect the domestic domestic AI chip industry, Beijing has not released it on a large scale. Reuters reported on the 6th that only about 10,000 H200 chips have been delivered, and about 600,000 H200 chips are stranded in Hong Kong, waiting to be shipped to China.