Huawei's affiliate was neighbors with Nvidia in California for a decade. US lawmakers want to know why.

A growing scrutiny surrounds Huawei's American research branch, Futurewei, as US lawmakers demand clarity regarding its decade-long presence on the Nvidia campus in Santa Clara, California. In a letter addressed to Futurewei, members of the House Select Committee on the Chinese Communist Party expressed their concerns over the co-location of the two companies, which they argue granted Futurewei significant access to advanced semiconductor and AI technologies. The arrangement saw Futurewei leasing three buildings at 2330 Central Expressway, where Nvidia sublet space. This setup remained intact until 2024, when Nvidia acquired the full lease and assumed complete control of the premises. The lawmakers characterized the situation as "deeply concerning" and have requested internal documents from Futurewei to investigate further. Republican Chairman John Moolenaar and Democratic Ranking Member Raja Krishnamoorthi highlighted the implications of this arrangement, noting that it may have allowed Futurewei to engage in activities that threaten national security. They referenced a 2018 lawsuit filed by Jesse Hong, a former employee of Futurewei, who accused the company of utilizing its position as a means of corporate espionage. The lawsuit claimed that Futurewei directed staff to infiltrate a closed-door Facebook telecommunications summit by using fictitious US company identities after Huawei was prohibited from attending. Additionally, the lawsuit alleged that Futurewei exploited its consulting relationships with American startups to gain confidential information. Although the case was settled in 2019, the lawmakers underscored that if Futurewei was indeed leveraged to access sensitive industry meetings, its embedded status within Nvidia's campus should not be dismissed as coincidental. Futurewei has since relocated to San Jose, a short distance from its previous location, but lawmakers expressed ongoing concerns about its operations in Silicon Valley. An Nvidia spokesperson assured that the company maintains stringent security measures to protect its offices and intellectual property, emphasizing that their campus remains separate from neighboring entities. Huawei has faced increasing scrutiny from US authorities for several years, particularly after being blacklisted by the Trump administration in 2019. This ban barred the company from accessing US suppliers and advanced chips. Under President Biden, the restrictions have remained in place, with an executive order signed in June 2021 further limiting investment opportunities in Chinese companies, including Huawei. Despite these challenges, Huawei has been making strides toward self-sufficiency, particularly in its smartphone line. Since 2023, the company has incorporated locally produced chips into its flagship Huawei Mate devices. Nvidia's CEO, Jensen Huang, has acknowledged Huawei's growing influence in AI, stating that the US government's attempts to hinder the company have not been effective. Furthermore, reports indicate that China's military is actively seeking Nvidia hardware for various applications, including advanced AI models and robotic technologies.