Jensen Huang’s Scandals Create Panic For Chinese AI Firms As They Rush To Secure NVIDIA GPUs Before The U.S. Shuts The Door On The Opportunity Forever - Wccftech

The fallout from CEO Jensen Huang’s personal scandal has triggered a scramble for AI chips in China.

It was revealed that one of the women with whom he admitted to having an affair was a Chinese spy, and her connections have exposed a massive $7.5 billion AI GPU network in the country.

U.S. export controls already ban the direct sale of top-end NVIDIA AI accelerators to China, but domestic firms have used workarounds.

Now, with the scandal adding urgency, major Chinese cloud providers and smaller AI labs are urgently contacting data center operators across Southeast Asia to lock in long-term GPU allocations.

New Legislation Threatens Access

A new Remote Access Security Act (RASA) could further restrict China’s access to the hardware.

RASA, which cleared the U.S. House of Representatives in January with a 369-22 vote, would grant the Commerce Department authority to ban Chinese entities from remotely accessing restricted AI GPUs via cloud platforms.

Underground Stockpiling and Smuggling

Anxiety over stricter enforcement has ignited a buying frenzy across China’s underground hardware channels.

Traders and middlemen are actively stockpiling high-end NVIDIA chips as they brace for a comprehensive federal crackdown on cross-border server smuggling.

NVIDIA has become a thorn in the side of the U.S. Commerce Department’s Bureau of Industry and Security, which is investigating Megaspeed.

This scrutiny could accelerate the passage of RASA, forcing Chinese firms to develop more elaborate smuggling tactics or rely on Huawei’s AI accelerators.