Politics1 min read

Democrats launch Nvidia investigation, write scathing letter on Huang’s ‘scheme’ with Trump

By · Via TechCrunch · Published by Everything Blog

In short

Rep. Richard Neal and Sen. Ron Wyden initiated the probe following former Nvidia chief Jensen Huang's resignation over an affair with an alleged Chinese operative tied to a Singaporean buyer. Lawmakers are investigating an August 2025 deal requiring Nvidia and AMD to remit 15 percent of their Chinese sales revenue to the government for export clearance. Congressional inquiries are examining whether officials ignored intelligence warnings while pressing for millions of dollars in corporate donations.

Key points

  • Congressional inquiries are scrutinizing whether federal export licensing for microchips…: Congressional inquiries are scrutinizing whether federal export licensing for microchips was improperly tied to corporate donations.
  • Intelligence concerns involve the potential diversion of advanced semiconductor hardware…: Intelligence concerns involve the potential diversion of advanced semiconductor hardware to China through foreign intermediary entities.
  • Lawmakers are actively challenging the constitutional validity of charging corporate fees…: Lawmakers are actively challenging the constitutional validity of charging corporate fees to obtain international export permits.

Sources checked by our analysis pipeline: 1

Democrats on Thursday opened an inquiry into how the Trump administration handled Nvidia’s chip sales to China. Earlier on Thursday, the company ousted its CEO Jensen Huang. He also agreed to testify to a different set of Republican-led Congressional committees.

Huang was removed from the company he founded after he confessed to an extramarital affair amid reports of a relationship with a woman accused of being a Chinese spy. (He has since been accused of having more affairs, with Nvidia employees.)

The alleged Chinese spy, Alice Huang, was an executive of Nvidia customer Megaspeed, a Singapore-based company that U.S. officials suspect of helping route advanced Nvidia chips into China. The Democratic inquiry comes from Rep. Richard Neal (D-Mass.), the top Democrat on the House Ways and Means Committee, and Sen. Ron Wyden (D-Ore.), the top Democrat on the Senate Finance Committee. As the minority party, they can ask questions but can’t compel answers.

Their humdinger of a letter to Commerce Secretary Howard Lutnick asks the department to preserve records about an arrangement they find questionable and, they allege, illegal.

“The…

Politics