Senate Republican Calls on Nvidia CEO Jensen Huang to Resign

A senior Republican on the Senate Banking Committee wants Jensen Huang out as CEO of Nvidia, the world's largest AI chip company, over what he calls a clear national security risk.

North Dakota Sen. Kevin Cramer made the call late Tuesday, days after disclosures that Huang had an extramarital affair with a woman U.S. officials suspect is a Chinese intelligence asset.

"The potential for extortion is so tremendous that something as sensitive as Nvidia chips, I just think he's got to go," Cramer told POLITICO.

He didn't stop there. "If the worst thing he did in real life is infidelity with this woman who may or may not be a Chinese spy — but she might be — that's enough, because whatever else there is, we don't know. And to me, that's a security risk," Cramer said.

What triggered the call?

The pressure traces back to a New York Times report published Oct. 29. U.S. officials determined that Alice Huang, a businesswoman associated with Singapore-based data center company Megaspeed, had developed a close relationship with the Nvidia CEO. Officials assessed she was a Chinese intelligence asset suspected of helping funnel advanced Nvidia chips to China.

That report roiled Washington. It also landed just as Congress weighs legislation that could curb Nvidia's chip sales to China — a policy area Cramer's own committee controls.

Why the Banking Committee matters

The Senate Banking Committee has jurisdiction over a trio of bills now in play:

• The AI OVERWATCH Act (S.4456)
• The Chip Security Act (S.1705)
• The MATCH Act (S.4281)

All three are under consideration for inclusion in the National Defense Authorization Act, the must-pass defense spending bill. Since the spy scandal broke, their odds of advancing have seemingly increased.

Nvidia did not immediately respond to POLITICO's request for comment.

Who else wants Huang gone?

Cramer is not alone. His remarks came just hours after Larry Kudlow, former director of the National Economic Council, urged Huang to resign on his Fox Business Network program.

"Step down Mr. Huang, right now," Kudlow said, calling resignation a "commonsense action."

Can Nvidia's board contain the fallout?

Over the weekend, Nvidia's board announced an independent investigation into the allegations that Huang was the target of a Chinese intelligence effort. A committee of independent directors is overseeing the inquiry, with assistance from outside independent counsel.

Cramer waved it off. The internal investigation was "fine, but not nearly enough," he said.

The takeaway in plain words: Nvidia's board investigation hasn't stopped the political bleeding, and with China-related chip bills gaining momentum in the Senate, Huang's personal conduct is now a legislative liability for the most valuable AI chip supplier in the world.