Nvidia and CEO Jensen Huang face a shareholder lawsuit over his affair with an alleged Chinese spy as the FBI investigates potential national security concerns surrounding the AI chip giant.
AOC’s Nvidia criticism draws questions about Swalwell’s suspected spy ties
Rep. Alexandria Ocasio-Cortez’s criticism of the Nvidia spy scandal drew pushback from social media commenters who questioned her response to former Democratic Rep. Eric Swalwell’s ties to a suspected Chinese operative.
Speaking to TMZ, the New York Democrat argued that concentrating wealth and economic power among a handful of billionaires creates national security vulnerabilities.
“All you need to do is compromise one of them to suffocate our entire, you know, economy,” she said.
Ocasio-Cortez also called for breaking up powerful companies.
“We need to check these guys’ power,” she said. “There’s a lot of companies that probably have too much power that need to be broken up and allow everyday people to have a shot.”
She called for an investigation into Nvidia CEO Jensen Huang’s relationship with a suspected Chinese spy, describing it as a “tremendous national security and intelligence breach.” Nvidia’s board has said it has no reason to believe U.S. national security or company secrets were compromised.
Commenters responding to TMZ’s post pointed to Swalwell. “It’s amazing how quickly she forgets Swalwell,” one wrote. Another asked what her views had been on his case.
Christine Fang, a suspected Chinese intelligence operative, helped raise money for Swalwell’s campaign and placed an intern in his office. The House Ethics Committee closed its investigation in 2023 without taking further action.
Indiana senator urges Congress to block China’s four routes to AI chips
Sen. Jim Banks, R-Ind., urged Congress to use this year’s defense policy bill to tighten restrictions on China’s access to advanced AI chips.
“The AI race with China is all about who has the best and most chips,” Banks wrote on X, outlining four ways Beijing obtains the technology.
Banks pointed to direct purchases from American companies such as Nvidia, illegal smuggling, remote access through overseas data centers and China’s own chip production.
He accused Beijing of using advanced chips to strengthen its military and expand government surveillance, arguing that bipartisan legislation could address all four routes.
“Congress has a generational opportunity in this year’s NDAA,” Banks wrote, referring to the National Defense Authorization Act.
“While we need a full assessment of the damage done to our national security by recent revelations, we can begin today by setting a better course,” he added. “No excuses. No apologies. Let’s get this done.”
Nvidia must weather Huang scandal without feeding it, PR expert says
Nvidia risks prolonging the controversy surrounding CEO Jensen Huang if it overreacts or keeps feeding the news cycle, a crisis communications expert said.
“The worst thing they could do is overreact or drag out the news cycle,” Matt Shupe, principal at Praetorian Public Relations, told Fox News Digital.
Shupe argued that Huang has addressed the affair with his family and employees and that the investigations should now run their course.
“This is like a trip to the emergency room, it’s not going to be pleasant and it could affect you for the rest of your life, but the goal is to not die,” he said.
Shupe predicted Nvidia could recover if Huang, his family and company stakeholders withstand the negative coverage and keep the controversy from disrupting the business.
“The stock will bounce back, Nvidia will continue to power AI and gaming, and everyone will move on to the next inevitable scandal,” he said.
White House pushes back as Nvidia scandal sparks demands for answers
The White House pushed back Tuesday on reporting about when President Donald Trump learned of Nvidia CEO Jensen Huang’s relationship with a suspected Chinese spy as lawmakers demanded answers.
FOX Business correspondent Darren Botelho reported on Fox News’ “Special Report” that The New York Times said Trump received multiple briefings about the relationship. The White House pointed to Trump’s comments Monday that he believed Huang had no idea the woman was suspected of spying.
The controversy is also reaching the courts. A class-action lawsuit obtained by Fox News accuses Nvidia and Huang of misleading shareholders, Botelho reported.
“I think he has this belief that it’s the United States of Nvidia and not the United States of America,” House Foreign Affairs Committee Chairman Brian Mast, R-Fla., said.
Lawmakers from both parties are seeking answers from Huang, while Nvidia has hired law firm Wachtell Lipton to investigate the relationship. The company’s board has said it has no reason to believe U.S. national security or company secrets were compromised.
SpaceX investor touts AI advantage, flags rivals’ financing risks
SpaceX’s reach across AI, satellite internet and rocket launches gives it an advantage over companies focused more narrowly on artificial intelligence, ERShares executive Eva Ados said.
Speaking on FOX Business’ “The Claman Countdown,” Ados said her firm invested in SpaceX before its IPO and favors its ownership of the infrastructure supporting its AI business.
“It competes in rockets, in launch, and Starlink,” she said, arguing those businesses give SpaceX several ways to compete.
Ados also discussed ERShares’ Private-Public Crossover ETF, which trades under the ticker “XOVR” and gives everyday investors exposure to private companies alongside publicly traded stocks.
She said the fund passed on OpenAI and Anthropic over concerns about future financing needs and whether customers would make long-term commitments to match the companies’ spending plans.
“We see a big financing issue,” Ados said.
Investor calls Nvidia scandal a ‘sideline’ as AI trade faces bigger test
Investor Dan Niles says the Nvidia leadership scandal is a “sideline” for AI investors weighing whether the sector faces a temporary setback or a crash resembling the dot-com bust.
Speaking with Charles Payne on FOX Business’ “Making Money,” Niles said the bigger question is whether this is “March of 2000 for AI” or a “speed bump” like semiconductor sell-offs in 1997 and 1998.
“This obviously is important for Nvidia, but for the AI trade, it really doesn’t matter,” Niles said.
Niles pointed to sharp semiconductor losses in the late 1990s that preceded further gains, arguing investors need to determine whether today’s turbulence signals a broader problem.
“It’s the bigger picture question of, do we have a much larger problem that we’re dealing with?” he said.
XPRIZE founder says AI data centers must share benefits with communities
AI data centers should supply their own electricity, create jobs and help lower local power costs to win over communities, XPRIZE founder Peter Diamandis said.
Speaking on FOX Business’ “Making Money,” Diamandis urged state and local officials to negotiate those benefits with developers as concerns over electricity demand, water use and noise fuel opposition.
“There’s enough profit in these data centers to address all of these needs and give back to the community,” he said.
Diamandis argued that developers can address environmental concerns through water recycling, energy storage and their own power supplies. He said the industry initially rushed to build without enough consideration for surrounding neighborhoods.
“Now they need to … make sure that they’re good partners,” he said.
Despite the backlash, Diamandis called the obstacles a “temporary phase” and predicted public support would grow as people see AI improve healthcare, education and everyday services.
Kudlow urges Nvidia CEO to step down, says AI’s future goes beyond Huang
FOX Business host Larry Kudlow called on Nvidia CEO Jensen Huang to step down while investigations unfold into his affair with a suspected Chinese spy, warning the controversy could damage the broader AI industry.
“Now is the time for him to step down while these investigations occur,” said Kudlow, who served as director of the National Economic Council during President Donald Trump’s first administration. He argued the move would set an example of “integrity and character and patriotism.”
Kudlow said Huang had been an effective spokesman for AI but that the national security allegations had undermined his ability to fill that role.
“The downfall of Jensen Huang, if that happens, is not the end of AI,” Kudlow said, pointing to advances by Google, Micron, AMD and Broadcom.
“Mr. Huang’s gonna wind up giving the whole AI revolution a very bad name,” he warned.
Musk says Starlink software is ‘well suited’ to training superintelligence
Elon Musk says software built to move data through Starlink’s satellite network could also help train advanced artificial intelligence.
“Turns out that the Starlink software, built for managing the movement of vast amounts of data through space and to the ground, is also very well suited to training super intelligence,” Musk wrote on X.
Musk offered no technical details in the post about how the software would be used or whether it is already being deployed for AI training.
Spencer Pratt says ‘China wins’ when US blocks AI data centers
Spencer Pratt blasted opposition to a proposed Maryland AI data center, arguing that blocking the project would cost jobs and undermine America’s technological edge.
The reality TV personality reacted on X to a Polymarket post claiming an activist helped block a $5 billion development at an abandoned shopping mall after gathering more than 25,000 signatures.
“There is nothing virtuous nor logical about blocking an abandoned parking lot from becoming a productive source of revenue and jobs while also enhancing America’s technological superiority,” Pratt wrote.
Pratt accused opponents of wanting to “cripple” America, ending his post with a blunt warning. “China wins.”
House China panel pushes chip export crackdown amid Nvidia spy concerns
The House Select Committee on China is pressing Congress to tighten AI chip export restrictions as lawmakers seek answers about Nvidia CEO Jensen Huang’s relationship with a suspected Chinese spy.
In posts on X, the committee urged passage of bipartisan legislation, including the AI Overwatch Act, which would give Congress greater oversight of advanced chip exports and the ability to block certain export licenses.
“We have basically a Cold War race with technology,” committee Chairman John Moolenaar, R-Mich., said in remarks shared by the panel. “We cannot allow the premier company at the forefront of this to, in some way, be irresponsible.”
Moolenaar and fellow Republican committee chairs Brian Mast and Rick Crawford have requested a joint, closed-door briefing with Huang on Nov. 18. They want answers about his interactions with former Megaspeed executive Alice Huang and Nvidia’s safeguards against foreign espionage. The lawmakers asked Huang to accept the date or propose an alternative by Nov. 11.
Georgia congressman warns US ‘cannot afford to lose’ AI race to China
Rep. Rich McCormick, R-Ga., warned that losing the AI race to China could threaten the technology underpinning America’s military, hospitals and economy.
“America cannot afford to lose the AI race,” McCormick wrote on X, calling for the U.S. to develop new technology domestically, train American workers and protect its innovations from foreign adversaries.
The Georgia Republican framed the competition as a fight over national security and economic independence, with consequences reaching well beyond the tech industry.
“Imagine a future where China controls the technology powering our military, our hospitals, and our economy,” he wrote. “That’s what’s at stake in the AI race.”
Michigan to test prison risk scoring tool as developer clears up AI claims
Michigan plans to test a new prison scoring system that officials say could improve predictions of violence by approximately 30%, potentially changing where inmates are housed and how closely they are supervised.
The pilot begins Dec. 1 at selected men’s prisons. The software reviews prison records, weighing factors such as recent disciplinary incidents, good behavior and completion of rehabilitation programs.
Despite reports describing the technology as AI, developer Recidiviz says artificial intelligence plays no role in calculating security scores. The system follows a points-based formula that corrections employees can review and override before making a final decision.
Michigan has not publicly explained how it calculated the projected 30% improvement. The state also faces questions about whether it has enough high-security beds to house inmates identified as needing tighter supervision.
This is an excerpt from Fox News’ Kurt Knutsson, CyberGuy Report.
Schumer rips Trump over Nvidia spy concerns, calls it ‘dereliction of duty’
Senate Minority Leader Chuck Schumer accused President Donald Trump on Tuesday of failing to act after he was reportedly briefed about Nvidia CEO Jensen Huang’s relationship with a suspected Chinese spy.
“What a dereliction of duty,” Schumer said on the Senate floor in a clip he shared on X. The New York Times reported that Trump was briefed roughly a year ago on Huang’s relationship with the woman and on intelligence that she was passing information to Beijing.
Schumer pointed to Huang’s trip to Beijing with Trump and Nvidia’s reported $25 million pledge toward the planned White House ballroom. The New York Democrat called for Congress to get a full account of the administration’s response and to pass legislation tightening restrictions on advanced AI chip exports to China.
Trump defended Huang on Monday, saying the Nvidia chief told him he had no idea the woman might be working for Beijing. “I really believe him,” Trump said.
Microsoft shares fall as Anthropic takes aim at Office ahead of IPO
Microsoft shares fell Tuesday after Anthropic unveiled AI-powered workplace tools that compete with products in Microsoft’s Office suite.
The new tools include Claude Sheets, which takes on Microsoft Excel, as well as shared whiteboards and a tool for building data dashboards, Business Insider reported. The rollout builds on Claude’s existing tools for creating documents and presentations.
The launch comes as Anthropic pitches investors on its initial public offering. Microsoft is among seven tech companies that have agreed to buy a combined $26 billion in Anthropic shares in a separate deal tied to the IPO.
Commerce deputy says quantum investment can help US keep its tech edge
The U.S. has a lead in quantum computing, and Deputy Commerce Secretary Paul Dabbar says the next step is turning that research into technology people can use.
Speaking Tuesday at the AI+ Quantum Summit in Washington, Dabbar pointed to about $2 billion in planned federal incentives for nine companies, including two that would make quantum chips in the U.S. He said the government is backing several approaches because it’s still too early to know which will work best.
Dabbar said the government can help by setting standards so buyers can compare products and by becoming a customer itself. Next month, the Commerce Department plans to invite companies to show how their tools could protect sensitive data from future quantum computers.
One area Dabbar is watching is drug discovery. He said quantum computers could start showing an advantage in that kind of research by 2028.
Fox News Digital’s Brooke Curto contributed to this report.
Anthropic takes on Microsoft and Google with new AI office tools ahead of IPO
Anthropic unveiled a suite of AI-powered office tools Tuesday, taking on two of its own investors, Microsoft and Google, as it prepares to go public.
The lineup includes Claude Sheets, a spreadsheet tool with AI built in that resembles Microsoft Excel and Google Sheets, Bloomberg reported. Anthropic also introduced a video meeting assistant and a tool for building data dashboards. Many of the tools are available in beta to paying users.
Claude Sheets is geared toward basic spreadsheet work, Anthropic product leader Nicholas Lin told Bloomberg. For more complex tasks such as financial modeling, he pointed to Anthropic’s plug-ins for existing spreadsheet programs.
The rollout comes as Anthropic pitches investors on its IPO. Microsoft and Google are among seven companies that have agreed to buy a combined $26 billion in Anthropic shares in a separate private placement tied to the offering.
Former DOJ official urges Congress to grill Nvidia CEO over suspected spy ties
Former Justice Department official John Yoo called on Congress to question Nvidia CEO Jensen Huang publicly about whether his affair with a suspected Chinese intelligence asset influenced his push to ease U.S. restrictions on AI chip sales to China.
Speaking on Fox News’ “America Reports,” the former deputy assistant attorney general said investigators should determine whether any sensitive information reached Beijing and what Huang knew about the woman’s alleged intelligence ties.
“Those are important questions that the CEO has to answer,” Yoo said. “I think he has to answer them in public.”
President Donald Trump said Huang told him he had no idea the woman was suspected of spying and that he believed him. Nvidia’s board has opened an independent investigation and said it had no reason to believe U.S. national security or company secrets had been compromised.
Anthropic targets $1 trillion valuation as it kicks off IPO roadshow
Anthropic is aiming for a roughly $1 trillion valuation in its initial public offering, below the nearly $2 trillion investors had discussed last month.
FOX Business’ Madison Alworth reported Tuesday that the Claude maker plans to offer 825 million shares at $70 to $78 apiece, according to its updated filing with the Securities and Exchange Commission. That would put the total offering at up to $64.4 billion, including shares sold by existing stockholders.
Anthropic also lined up $26 billion in a separate private placement with seven tech companies, including Google, Microsoft and Nvidia. Those investors would pay the same price per share as IPO buyers, with the private sale set to close after the offering.
Anthropic plans to list on the Nasdaq under the ticker “ANT,” with trading expected to begin in mid-November.
Nvidia taps former federal prosecutor to lead Jensen Huang probe
Nvidia’s board has brought in a former top federal prosecutor to investigate CEO Jensen Huang’s affair with a business executive suspected of gathering intelligence for China.
The board hired law firm Wachtell Lipton to handle the inquiry, The New York Times reported. Joon H. Kim, a partner at the firm who previously served as acting U.S. attorney for the Southern District of New York, will lead the probe.
Nvidia announced the investigation Sunday after Huang acknowledged the affair. A committee of independent directors will oversee the review with help from outside counsel.
The board said it had no reason to believe U.S. national security or company secrets had been compromised. It said Huang has agreed to cooperate and that it continues to have confidence in him and his leadership team.
Covered by: Stephen Sorace, Eric Revell, Amanda Macias, Stepheny Price and Brooke Curto