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# The A.I. Spy Scandal
- URL: https://unprecedented.ghost.io/archive/the-a-i-spy-scandal/
- Published: 2026-11-10T18:53:32.000Z
- Updated: 2026-11-10T19:22:10.000Z
- Description: Six warnings. Billions in chips. Who looked away? And why?
- Author: Richard Hine
- Tags: nvidia, jensen huang, broligarchs, corruption, trump corruption, trump and china, AI, the ai spy

The Nvidia spy scandal offers a new window into the compromises and corruption that have defined Trump's second term.

New reporting indicates that Trump personally knew about the "honey trap" allegations involving Nvidia CEO Jensen Huang [last year](https://www.nytimes.com/2026/11/09/us/politics/trump-jensen-huang-spy.html?unlocked%5Farticle%5Fcode=1.PVE.EHuY.FjC0stFT6PSj&smid=url-share&ref=unprecedented.ghost.io). 

Nevertheless, Trump loosened the restrictions on chip sales to China in late 2025 and early 2026, with a plan the Council on Foreign Relations called "[Strategically Incoherent and Unenforceable](https://www.cfr.org/articles/new-ai-chip-export-policy-china-strategically-incoherent-and-unenforceable?ref=unprecedented.ghost.io)."

With so much of the US economy now dependent on the AI infrastructure boom, Trump continues to be astonishingly reckless in how he's handling this still-expanding scandal.

Despite the threat posed by Jensen Huang's affair, [Trump personally intervened](https://www.nytimes.com/2026/05/12/us/politics/trump-china-summit-nvidia-jensen-huang.html?unlocked%5Farticle%5Fcode=1.PVE.9NMq.TFU8ZnVouSfr&smid=url-share&ref=unprecedented.ghost.io) to make sure he was part of the business delegation that flew with to China with the president in May 2026.

As *The New York Post* [writes today](https://nypost.com/2026/11/10/business/jensen-huang-lobbied-very-good-friend-trump-for-more-chip-sales-to-china-while-caught-in-beijings-honeytrap/?ref=unprecedented.ghost.io):

> Nvidia CEO Jensen Huang made himself President Trump’s “very good friend” and lobbied the administration to loosen restrictions on AI chip sales to China while he was allegedly ensnared in a Chinese honeytrap.

As I have written about in the past, the president's [own dubious dealings with China](https://unprecedented.ghost.io/archive/15m-turned-trump-into-chinas-chump/) — along with suspiciously granted [trademark deals for Ivanka](https://unprecedented.ghost.io/archive/ivanka-trump-has-a-trademark-on-corruption/) — effectively turned Trump into China's chump.

In an attempt to succinctly explain the key facts of the latest scandal, I used Claude Code to create this [short video](https://youtube.com/shorts/7FZKScNifXA?si=AXXFEZhH8u1Wmex2&ref=unprecedented.ghost.io) based on available news reports:

The bottom line: With China continuing to make [rapid advances](https://unprecedented.ghost.io/archive/china-crisis/) in AI, both Nvidia and the Trump administration have some serious explaining to do about why they looked away from a scandal that could potentially set back U.S. leadership in AI and — if it bursts Wall Street's AI bubble — cripple the U.S. economy. 

On a personal level, both Jensen Huang and Donald Trump have established themselves as irreplaceable "key men," one at Nvidia and the other within the Republican Party.

Neither have a clear successor.

Both appear to have been turned into useful idiots by foreign governments — and both remain active national security threats.

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