Fox Business host and former White House economic adviser Larry Kudlow called on Nvidia chief executive Jensen Huang to resign Tuesday, arguing that allegations involving a suspected Chinese spy and mounting national security concerns have made his continued leadership of the artificial intelligence chipmaker untenable.
Kudlow said Huang should voluntarily step aside while Nvidia’s board of directors and federal authorities investigate his relationship with a woman suspected of working for Chinese intelligence, as well as questions surrounding the possible smuggling of advanced American semiconductors to China.
“The very least that should happen is that Mr. Huang should exercise some common sense, and step down from his positions at Nvidia, including chief executive,” Kudlow said during his opening commentary on Kudlow.
Huang acknowledged Sunday that he had an affair with Alice Huang, a former executive at Singapore-based Megaspeed, a major Nvidia customer. U.S. intelligence officials reportedly believe she was working on behalf of China’s Ministry of State Security.
Nvidia’s board announced Sunday that it had launched an independent investigation into reports that its chief executive had been targeted by a foreign intelligence operation. The inquiry will be overseen by independent directors and outside counsel.
The board said it had no reason to believe that national security or Nvidia’s confidential information had been compromised. It also expressed confidence in Huang’s leadership and said he was cooperating with the investigation.
President Donald Trump said Monday that the FBI was looking into the matter.
Kudlow also pointed to reports that Secretary of State Marco Rubio oversaw the preparation of a classified intelligence memorandum warning senior administration officials about Huang’s relationship with the suspected Chinese intelligence operative.
The New York Times reported Tuesday that Rubio personally briefed Trump about the intelligence during the president’s trip to China in May.
The controversy has also raised questions about Megaspeed, which has been investigated over suspicions that advanced Nvidia chips were illegally diverted to China. Kudlow cited the chip-smuggling allegations as another reason Huang should relinquish his leadership positions while the investigations proceed.
Beyond the national security questions, Kudlow warned that the scandal threatens to undermine public confidence in the rapidly expanding artificial intelligence industry.
“Mr. Huang is going to wind up giving the whole AI revolution a very bad name,” Kudlow said, pointing to growing bipartisan opposition to data centers and public concerns about artificial intelligence.
Kudlow acknowledged that Huang had previously served as an effective advocate for the technology, but said the revelations had changed that assessment.
“Mr. Huang has been a good spokesperson for the AI revolution, but with these honeypot/national security revelations, he no longer is a good spokesperson for the AI revolution,” Kudlow said.
He also warned that incoming Democratic majorities in the House and Senate were likely to subject Huang to aggressive congressional scrutiny.
The controversy has already attracted attention on Capitol Hill. Republican chairmen of three House committees have requested that Huang appear for a closed-door briefing about Nvidia’s security procedures and his interactions with Alice Huang.
Kudlow stressed that Huang’s departure would not threaten the future of artificial intelligence, pointing to technological advances by competitors including Google, Advanced Micro Devices, Broadcom, and Micron.
“The downfall of Mr. Huang, if that happens, is not the end of AI,” Kudlow said.
The former director of the White House National Economic Council emphasized that he was not seeking to prejudge the investigations or determine Huang’s guilt.
“Right now I’m not here to indict Mr. Huang,” Kudlow said. “I will simply suggest that he set an example of integrity, character, and patriotism.”
“Now is the time for him to step down, while all these investigations occur. And ultimately let the chips fall where they may.”
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