An unusual bipartisan Senate coalition is pressing the chip manufacturer Nvidia regarding its plans for opening a Research and Development Center in Shanghai, where the company asserts its support for China’s defense and technological capabilities.
Senators Jim Banks (R-Ind.) and Elizabeth Warren (D-Mass.) stated that Nvidia’s “recent actions pose significant national and economic security concerns that necessitate thorough examination.”
“It is alarming that American corporations are aiding the People’s Republic of China in developing advanced semiconductor capabilities that bolster its defense industry and the skills of its engineers.”
Lawmakers are requesting details from Nvidia on the specific research and engineering endeavors planned for the facility, including the types of chips to be explored and the financial investments involved. They also inquired about the number and various roles of researchers that will be employed there.
Han explained to reporters that by late April, approximately 50% of the world’s AI researchers are of Chinese origin.
“This is a competitive sector we must engage with,” the executive remarked.
“Given its crucial position as an American entity, Nvidia must acknowledge the substantial national security implications surrounding the use and potential misuse of its products,” the senator noted during a discussion with Huang. “This innovation should be fostered within a network of close democratic partners who share our values and commitment to the responsible use of emergent technologies.”
An Nvidia representative conveyed to Hill via email that the company “is merely leasing additional space for existing employees who require rooms after hours,” adding that “the nature of work remains unchanged.”
The involvement of upper chamber legislators demonstrates an atypical collaboration between progressive advocate Warren and Trump ally Banks, a proponent of “America First” policies.
Earlier this year, the duo initiated their collaboration on a bipartisan inquiry into the influence of private equity on rising fire truck costs.
Nvidia finds itself in a delicate position, striving to maximize its profits from both Chinese and U.S. markets while adhering to new export controls established during the Trump administration.
Huang indicated last week that such export restrictions disadvantage the California-based firm, noting that Nvidia has experienced a decline in market competitiveness in China over the past four years.
“Local companies are highly skilled and incredibly determined, and the export controls are providing them with the motivation, energy, and governmental backing necessary to hasten their growth,” Huang stated at an industry conference in Taipei on May 21. Wall Street Journal.
Nvidia reported earlier in May that the United Arab Emirates will soon be able to import the company’s most sophisticated AI chips, expected to reach 500,000 units annually.
This week, Nvidia announced robust quarterly revenue exceeding Wall Street estimates amid stringent export controls. The company’s revenue surged 69% year-on-year, rising from $26 billion in Q1 2024 to $44 billion in Q1 2025. Additionally, revenue from the data center segment increased from $22.6 billion to $39.1 billion during the same period. Strict export controls could potentially result in Nvidia incurring $5.5 billion in costs to export H20 chips to China.
“Nvidia’s remarkable financial and technical achievements stem from American innovation, the research conducted at American universities funded by taxpayers, and the capital, security, and freedoms we offer.”
Source: thehill.com