Driving the news: Secretary of State Marco Rubio oversaw the drafting of the memo detailing Huang’s relationship with Alice Huang, whom U.S. intelligence officials consider to be a Chinese intelligence agent, according to the New York Times.
- The memo, which draws on Alice Huang’s surveillance and an investigation into chip smuggling at her company, Megaspeed, circulated ahead of President Trump’s May 13-15 trip to China.
- Rubio also warned Trump directly aboard Air Force One before a refueling stop in Anchorage where Jensen Huang joined the delegation. He was not initially invited to participate, the Times reported Tuesday.
- On May 14, Reuters reported that the Commerce Ministry had authorized about ten Chinese companies to purchase Nvidia’s H200 chips.
- Some export approvals predated the warning. Nvidia revealed in February that it had received an H200 export license, and Huang told Axios’ Ina Fried in March that the company had licenses covering Chinese customers.
Yes, but: It’s unclear how these approvals ultimately translated into sales, as the Chinese government halted some chip purchasing activities despite U.S. approvals.
- Megaspeed has purchased billions of dollars worth of Nvidia chips, according to several media outlets.
What they say: Trump said Monday it was possible intelligence officials showed it to him, but he doesn’t remember: “Certainly, it didn’t have much impact on me.”
- The Commerce Ministry had no comment.
Catch up quickly: Nvidia has been rocked by scandal, losing about $1 trillion in market value since the Times first reported the relationship, though some of that decline also came after an overwhelming number of Democrats promising to slow AI data center construction were elected in the midterms.
- Huang admitted to an affair on Sunday and Nvidia’s board announced an independent investigation. The board expressed confidence in his leadership and said it had no reason to believe national security secrets had been compromised.
What to watch: New revelations continue to emerge almost daily about the administration’s management of the relationship with Nvidia’s CEO. Lawmakers from both parties have promised investigations and demanded more information, including closed-door testimony from Jensen Huang next week.
- Top Democrats on the House Foreign Affairs Committee also demanded answers from Lutnick on the administration’s chip approvals, “including for companies with concerning ties to China and amid alarming reports of potential ties between Chinese intelligence services and Nvidia CEO Jensen Huang.”
Gn bussni
