Mike Johnson supports measures to restrict US chip sales to China

Politico reported that House Speaker Mike Johnson supports measures to restrict US chip sales to China. Bloomberg Government News noted that Huang's admission has catapulted Nvidia's lobbying and influence teams into a severe trial. According to Bloomberg Government News, the suspected Chinese spy was identified as Alice Huang, a former executive at Megaspeed International. Nvidia's board stated it was investigating reports that the company was the target of a foreign intelligence effort. Bloomberg reported that Jensen Huang said in a memo he is "committed to protecting Nvidia and supporting America's national security."

Nvidia stated, "Today’s news will not slow NVIDIA. Jensen is committed to continuing to lead NVIDIA as CEO without interruption." Bloomberg Government News reported that Nvidia's market capitalization dropped below $5 trillion on Monday. The company spent nearly $2.2 million on federal lobbying in the third quarter, representing its biggest investment to date according to disclosure filings. Nvidia spent $4.7 million on federal lobbying so far this year, and about $5 million on federal lobbying last year. In June, Nvidia brought in Bruce Andrews as chief external affairs officer. Andrews is a longtime K streeter who served as chief government affairs officer for Intel Corp and as deputy secretary at the Commerce Department during the Obama administration.

In addition to its in-house lobbying team, Nvidia retained Brownstein Hyatt Farber Schreck, the Nickles Group, and Tiber Creek Group in the third quarter of this year, with a termination report effective July 31 filed for the Vogel Group. Nvidia disclosed lobbying on issues related to semiconductor trade policy, artificial intelligence, and export control matters. The company lobbied the US Senate, House, and executive branch agencies including the Pentagon, Commerce and Treasury departments, and the National Security Council. Furthermore, Nvidia launched a political action committee in August that raised more than $260,000 as of September 30, though it has not yet disclosed any contributions to candidates.

Ron Bonjean, who runs the public affairs and crisis communications firm ROKK Solutions, said, "This is titanic." Bonjean added, "This has the recipe for disastrous consequences." He stated the company should brace for Capitol Hill investigations, executive branch meetings, and a potential new CEO depending on what comes to light. Bonjean noted that Nvidia's public affairs and government relations teams "have to take the posture that they are getting to the bottom of it as quickly as possible" and "need to show they are providing complete transparency about what has occurred, what contracts have potentially been affected in order to maintain trust and build back any good faith that’s been lost." Meanwhile, Bloomberg Government News noted the scandal is likely to buoy efforts from lawmakers who previously proposed greater restrictions on Nvidia's exports to China. Sen. Elizabeth Warren posted on X on Monday that Congress is back and has legislation ready to go to stop advanced AI chips from fueling China's military.