Why is Nvidia so powerful in the AI world, and what could Jensen Huang’s scandal really cost?

Jensen Huang, the chief executive and co-founder of chipmaking company Nvidia, recently admitted to an extramarital affair. However, it’s not just a tabloid story: the woman involved, Alice Huang, has been accused of being a Chinese intelligence agent. Computer chips — specifically the chips used to produce and run artificial intelligence (AI) systems — have become a key front in the United States’ rivalry with China for geopolitical power and influence. The most powerful chips are needed for the most advanced AI, and the US has tried to maintain its edge over China by restricting access to those chips. While…