House Democratic leader says lawmakers need answers on Nvidia, wants China chip restrictions

House Democratic leader says lawmakers need answers on Nvidia, wants China chip restrictions
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Summary Hakeem Jeffries demands answers over Nvidia's alleged China intelligence concerns and urges Congress to strengthen restrictions on advanced AI chip exports.

WASHINGTON (Reuters) - US House of Representatives Democratic leader Hakeem Jeffries said on Monday that Congress needs more answers ​after reports emerged that Nvidia (NVDA.O) CEO Jensen Huang had been targeted by ‌a foreign intelligence effort.

Jeffries also called for the House to pass an annual defense bill that includes restrictions on chip sales to China that are included in a bill ​now before the US Senate.

"Clearly Congress needs more information," about ​what happened at Nvidia, Jeffries said, adding that there are "real ⁠concerns that need to be addressed with respect to the ​Nvidia situation."

Jeffries said a classified briefing for congressional leaders on Monday with ​CIA director John Ratcliffe and Director of National Intelligence Jay Clayton briefly discussed Nvidia but mostly focused on Iran. "We're going to need a full briefing specifically as ​it relates to the Nvidia situation so we can all get ​to the bottom of what has happened," Jeffries said.

The internal Nvidia probe ‌followed ⁠a media report that Huang had a close relationship with a Chinese businesswoman who allegedly passed information to Beijing. Huang told Nvidia's employees that he had been unfaithful to his wife, without disclosing details of ​the relationship.

A Senate version ​of the defense ⁠bill contains provisions to give Congress more authority on AI chips going to China, prodding US allies ​to restrict sales of semiconductor manufacturing equipment to China ​and ⁠requiring businesses to track their AI chips abroad to combat smuggling.

Jeffries said he "strongly supports" restrictions on sales of US chips to China in ⁠the ​final version of the annual defense bill.

​It was unclear whether Jeffries planned to disband the China select committee or create a ​special committee on AI policy.