Democrats Probe Trump-Nvidia 15% China Chip Deal as CEO Ouster Deepens Scrutiny
Updated
Updated · TechCrunch · Nov 12
Democrats Probe Trump-Nvidia 15% China Chip Deal as CEO Ouster Deepens Scrutiny
3 articles · Updated · TechCrunch · Nov 12
Summary
Rep. Richard Neal and Sen. Ron Wyden opened an inquiry into how the Trump administration approved Nvidia chip sales to China, asking Commerce to preserve records tied to a potentially illegal arrangement.
Their letter says Trump allowed Nvidia’s H200 sales if Taiwan-made chips first entered the U.S., where a tariff effectively took a 15% government cut before Commerce issued export licenses.
The Democrats also question why Commerce kept approving sales to Singapore-based Megaspeed and other Asian buyers after intelligence reportedly flagged suspected diversion routes into China and concerns about listed addresses.
The probe widens beyond Nvidia, asking whether Trump used knowledge of Jensen Huang’s alleged relationship with an accused Chinese spy to extract $26 million in donations before the export deal was approved.
The inquiry follows Huang’s ouster on Thursday and his agreement to testify to separate Republican-led House committees, making this the second congressional investigation since the alleged spy affair surfaced.
Will ongoing scrutiny over alleged conflicts of interest in export licensing fundamentally alter how the U.S. manages sensitive semiconductor trade?
Can Nvidia's new tracking systems effectively prevent advanced AI chips from reaching restricted buyers through third-party intermediaries in Southeast Asia?
How might the unusual requirement to route foreign-made chips through the U.S. for tariffs reshape global technology supply chains?