Nvidia Urged to Avoid Firms Undermining U.S. Chip Controls

U.S. Senators Jim Banks and Elizabeth Warren cautioned Nvidia CEO Jensen Huang ahead of a planned trip to China, requesting he avoid meetings with entities linked to the Chinese military, intelligence bodies, or those on the U.S. restricted export list. The senators expressed concern that Huang’s visit could inadvertently support companies circumventing U.S. export controls, particularly given Nvidia’s plans to launch a cheaper version of its Blackwell AI chips for the Chinese market and a new research facility in Shanghai. Huang previously estimated that U.S. restrictions on AI chips, modified for export to China, would reduce Nvidia’s revenue by $15 billion.

U.S. senators cautioned Nvidia CEO Jensen Huang regarding an upcoming trip to China, urging him to avoid engagement with companies suspected of undermining U.S. chip export controls. Senators Jim Banks and Elizabeth Warren co-authored a letter requesting that Huang abstain from meetings with representatives of entities linked to the People’s Republic of China’s military or intelligence bodies, as well as those listed on the U.S. restricted export list.

The senators expressed concern that Huang’s visit could inadvertently legitimise companies closely cooperating with the Chinese military or facilitate discussions regarding loopholes in U.S. export controls. They highlighted the potential for advanced AI hardware to accelerate China’s military modernisation efforts, raising concerns about Nvidia’s risks within the Chinese market.

Nvidia plans to launch a cheaper version of its Blackwell AI chips specifically for the Chinese market and has established a new research facility in Shanghai. These actions prompted previous concerns from the senators regarding potential support for China’s AI and chip industries.

Huang publicly praised President Trump’s decision to relax some artificial intelligence chip export controls, characterising prior regulations as ineffective. He estimated that U.S. restrictions on AI chips, modified to comply with export controls to China, would reduce Nvidia’s revenue by $15 billion.

U.S. lawmakers have grown increasingly concerned about circumvention of export controls to China and have proposed legislation requiring AI chip companies to verify the final location of their products. Reuters reported that DeepSeek, an AI firm, is allegedly aiding China’s military and intelligence operations, utilising shell companies to bypass U.S. AI chip export controls.

Nvidia maintains that its technology benefits the United States globally, asserting that its products should perform optimally on the U.S. technology stack, thereby encouraging international adoption of American technology.