Home Gaming After the AI chip traffic to China, Nvidia is under pressure again

After the AI chip traffic to China, Nvidia is under pressure again

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For the past few days, the semiconductor company has come under pressure again: two American senators (Jim Banks and Elizabeth Warren) are calling loudly for Nvidia to suspend its sales of advanced AI chips destined for China and some Southeast Asian countries after the arrest of three individuals accused of being involved in a semiconductor trafficking scheme.

This is an episode that Nvidia, the American semiconductor leader, would have preferred to avoid. While the company has been seeking to restore its sales in China for weeks after Donald Trump’s 180-degree turn, two American senators (Republican Jim Banks and Democrat Elizabeth Warren) have demanded the suspension of all export licenses for its AI chips to China and its intermediaries.

This demand comes days after the Super Micro scandal, involving the company trafficking Nvidia chips to China. Three of its employees, who have been indicted in the United States, are accused of illegally passing $2.5 billion worth of Nvidia semiconductors to China. This diversion could potentially enable Beijing to develop weapons, lamented the two American politicians.

Context: The article highlights the pressure faced by Nvidia following allegations of its chips being illegally diverted to China.

Fact Check: The content is based on statements made by American senators regarding Nvidia’s involvement in selling semiconductor chips to China illegally.