Jensen saga fallout: Chinese AI firms rush to secure Nvidia chip capacity; Beijing says spy claims to justify US tech blockade

Chinese artificial intelligence companies are trying to secure access to Nvidia-powered computing capacity at data centres outside China amid fears that the US could tighten restrictions on their use of advanced chips. The concerns come amid controversy surrounding Nvidia CEO Jensen Huang and claims linking a woman associated with him to Chinese intelligence, Reuters reported, citing three people familiar with the matter.

The US restricts the export of Nvidia's most advanced AI chips to China to maintain its lead in the technology sector. However, Chinese companies can still use these processors by renting computing power from data centres in other countries.

Reuters reported that a major Chinese cloud service provider has discussed securing overseas Nvidia chip capacity. Some other Chinese companies have also contacted data-centre operators to reserve computing resources, the sources said.

Jensen Huang controversy adds to concerns

The developments come after Huang admitted on Sunday that he had been unfaithful to his wife. The New York Times identified the woman as Alice Huang, a former executive at Singapore-based cloud computing company Megaspeed. The newspaper also reported that US authorities believed she was linked to Chinese intelligence.

In a separate account, The New York Times reported another alleged affair involving a female executive who works under Huang. Five people who saw the two together at a hotel during an Nvidia conference described them as being close.

Huang co-founded Nvidia, which has grown into the world's leading supplier of AI chips. He has also spent years lobbying against US restrictions on advanced chip sales to China.

Also Read: Who is Kimberly Powell, the woman Jensen Huang allegedly had a second affair with?

China says US using spy claims to justify tech blockade

Beijing has rejected the claims involving Huang and accused Washington of using espionage allegations to restrict China's technology sector.

"China's technological progress is driven by independent innovation and open cooperation. The US side should stop fabricating such 'spy' narratives as a pretext for imposing a technological blockade," Chinese Foreign Ministry spokesperson Mao Ning said on Thursday.

China has also described the allegations as "groundless speculation" and "an attempt to smear China".

The dispute comes as Washington and Beijing continue to compete for an advantage in artificial intelligence.

US President Donald Trump last year approved the export of Nvidia's H200 chips to China, despite objections from lawmakers who fear that Beijing could gain an advantage in the AI race.

Huang has repeatedly argued against restrictions on Nvidia's chip sales to China. Chinese technology companies are now concerned that Washington could go further and limit their access to Nvidia processors through overseas data centres.