OCTOBER 21: Jensen Huang, CEO of NVIDIA, gives a keynote address at the NVIDIA Berlin GPU <a href="https://myappsplus.com/unicross-students-to-acquire-modern-production-skills-with-new-laser-technology/” title=”UNICROSS Students to Acquire Modern Production Skills with New Laser Technology”>Technology Conference (GTC) on October 21, 2026 in Berlin, Germany. The three-day event is bringing together developers, researchers, and industry leaders in artificial intelligence infrastructure. (Photo by Sean Gallup/
WASHINGTON (TNND) —A scandal involving Nvidia CEO Jensen Huangand questions about restricted artificial intelligence chips reaching Chinese entities has raised national security concerns and renewed calls for tighter U.S. export controls.
Gordon Chang, a China expert and senior fellow at the Gatestone Institute, told The National News Desk the situation could lead to tougher U.S. action on chip exports. (TNND)
U.S. authorities have raised concerns about restricted AI chips reaching Chinese entities. Nvidia has said its checks confirmed “everything was where it should be,” but trade records and filings highlighted by other outlets show tens of thousands of chips that do not match those counts. The gap is worth billions and sits at the center of the AI race with China.
“I think that essentially we’re going to see tightening of U.S. export controls, and there’s probably going to be legislation, not just an executive order,” Chang said. He added that while Beijing “certainly is not going to like that,” he believes Nvidia, which he described as central to America’s AI dominance, “has been damaged,” and “in Beijing, they’re very happy about that.”
Chang said the stakes are high if restricted chips have been reaching China.
“China cannot compete with the U.S. on AI without American chips and what we have done is give them the ability to dominate us,” Chang said. “So this is extremely serious.”
Chang also alleged that Nvidia employees should have recognized warning signs earlier.
“People at Nvidia had to have known what was going on,” he said, adding that it was “evident at the beginning of this year” because “we knew that China had a lot of Blackwell chips and it was clear that Nvidia was selling them under circumstances that should have raised suspicions.”
Chang pointed to Bloomberg reporting that he said Nvidia undercounted the number of chips it sold to Megaspeed, a company he said is connected to Alice Huang, described as a suspected Ministry of State Security agent who had an affair with Jensen Huang. Chang said that when Nvidia corrected its undercount, “it did so in a way that confused issues, not clarified them.”
“This looks extremely bad for Nvidia,” Chang said. “And I’m sure that when this is over, we are going to see some very unexpected events, probably criminal indictments.”
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