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China to see tighter restrictions on Nvidia AI chips, says report

China can face even tighter US restrictions on accessing Nvidia AI chips, says a new report. The US Commerce Department is planning to limit chip exports to Chinese clients after Nvidia CEO Jensen Huang was caught in a spy scandal.

Reuters reported that Jensen Huang resigned from Nvidia CEO’s post after his extramarital affair controversy. Jensen was in a relationship with Alice Huang, a Chinese technology executive and investor.

US authorities suspected Alice of keeping an eye on US technological data for the Chinese government. Since then, the US has planned to impose tougher restrictions on China for Nvidia AI chips.

Chinese AI firms are planning to rent Nvidia’s computing technologies outside their home ground. These companies are concerned that due to Jensen affairs, the US may further tighten chip curbs on them.

The US authorities have already prohibited many Chinese companies from accessing Nvidia AI chips. Although the latest Jensen controversy linked to a Chinese businesswoman can raise the “ban” concerns to a greater extent.

(Image Credits: Weibo)

Several lawmakers showed eagerness to introduce new restrictions for China related to the advanced Nvidia AI chips in the annual defense authorization bill. It will act as a mandatory measure for both Chinese clients and US companies.

Four bills on chip exports could be added, including the Chip Security Act to track the location of advanced AI processors, the AI Overwatch Act for AI chip exports, the Match Act for US allies to restrict chip sales in China, and the Remote Access Security Act to prevent Chinese firms from renting computing tech outside China.

China has been facing US curbs for years, and the latest controversy could bring a new turn to this story. US lawmakers said Nvidia should hold a separate investigation into Jensen’s affair to see if the matter has moved beyond.

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