Chinese AI shares tumble after Nvidia’s Jensen Huang resigns
Shanghai-listed AI chipmaker Cambricon Technology rose 1.2 per cent and was on course to jump 22 per cent this week in its best showing in six months.
Domestic chipmaker Hygon Information Technology was poised to gain 7 per cent this week.
TIGHTER RESTRICTIONS
Nvidia CEO Jensen Huang stepped down on Thursday after revelations of extramarital affairs, including one involving a suspected Chinese spy, plunged the chipmaker into a crisis and sent shockwaves across the AI industry.
US House Speaker Mike Johnson said on Thursday there was growing consensus in Congress on limiting chip exports to China after the scandal.
Meanwhile, Chinese AI companies are trying to rent Nvidia-powered computing capacity outside China, worried that the development around Nvidia’s Huang could spur Washington to tighten restrictions on their remote use of advanced processors.
“The biggest risk to China’s AI industry is that the scandal leads to a tightening of US export controls on advanced chips and chip-making equipment, possibly by the end of this year,” Gavekal Dragonomics said in a report.
