Reed Statement on NVIDIA CEO Resignation and Trump’s Failure to Protect America’s National Security

WASHINGTON, DC – Today, after Jensen Huang resigned as CEO of NVIDIA, U.S. Senator Jack Reed (D-RI), the Ranking Member of the Senate Armed Services Committee, issued the following statement: “Jensen Huang’s resignation does not excuse his recklessness or dispel the alarming questions surrounding NVIDIA and the Trump Administration’s failure to protect American national security from Chinese espionage. “American semiconductor technology is essential to our military capabilities and our technological advantage over China. Yet the Trump Administration reversed course on critical export restrictions, allowing NVIDIA to sell advanced AI chips to China despite clear national security risks. I am aware of reports that these chips were diverted through intermediaries with ties to Chinese intelligence. This crisis raises alarming questions about the security of our technology and the integrity of our military supply chains under the Trump Administration. “Indeed, the Commander of U.S. Pacific Command testified to Congress this year that the transfer of advanced semiconductors to China would ‘undoubtedly’ come at the expense of American servicemembers in the event of a conflict. “Even more disturbing are reports that President Trump was briefed on intelligence linking a suspected Chinese operative to Huang and chose not to act. If true, this represents an extraordinary failure of presidential responsibility. The President’s first obligation is to protect the American people and our servicemembers, not to protect powerful corporate allies or accommodate their commercial interests. “Millions of Americans also have economic exposure to NVIDIA through their retirement accounts and pension funds. The company has backstopped the AI ecosystem through complex financing transactions. We need full transparency into these deals, an assessment of whether the company is ‘too big to fail,’ and an analysis of how these events may affect the U.S. banking system and credit markets. “Jensen Huang’s departure does not resolve this matter. We need a full accounting of what the Administration knew, when it knew it, and why it failed to act. Congress must get answers, and those responsible must be held accountable.” Public reporting revealed that Jensen Huang had an extramarital relationship with an executive at Megaspeed, a Singapore-based company. The executive is a suspected Chinese intelligence asset. Megaspeed has purchased more than $4.8 billion in advanced NVIDIA AI chips since June 2024. The Department of Justice is reportedly investigating Megaspeed for diverting chips to China in violation of export controls. Reporting also suggests that officials at the White House, State Department, and Commerce Department, including President Trump, knew of these concerns, yet continued to approve the sale of advanced semiconductor chips to China.