Overview
- Sens. Elizabeth Warren and Jim Banks asked Commerce Secretary Howard Lutnick to pause or suspend all active licenses for Nvidia’s advanced AI chips and server systems bound for China and for intermediaries in Southeast Asia.
- Their push follows Justice Department charges against three men tied to Nvidia customer Super Micro Computer, including co‑founder Yih‑Shyan “Wally” Liaw, accused of moving billions of dollars in Nvidia AI servers into China through third countries.
- The lawmakers also requested an inquiry into whether Nvidia CEO Jensen Huang’s 2025 remarks claiming there was no evidence of diversion misled officials during license reviews.
- Nvidia said strict compliance is a top priority and argued diversion is a losing move because the company withholds service and support from diverted systems and enforcement remains rigorous.
- The senators urged bans on sales to intermediaries in Malaysia, Thailand, Vietnam, and Singapore, a step that could slow sales, squeeze resellers and buyers that rely on those hubs, and strengthen export controls meant to keep advanced U.S. AI hardware from foreign adversaries.