By David Shepardson WASHINGTON, Nov 12 (Reuters) – The top Democrat on the Senate Armed Services Committee said on Thursday he wants Congress to review whether AI chipmaker Nvidia is “too big to fail” and whether its possible failure would impact the US banking and credit markets. Senator Jack Reed of Rhode Island said Nvidia “has backstopped […]
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US Democratic senator wants assessment of whether Nvidia is ‘too big to fail’
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By David Shepardson
WASHINGTON, Nov 12 (Reuters) – The top Democrat on the Senate Armed Services Committee said on Thursday he wants Congress to review whether AI chipmaker Nvidia is “too big to fail” and whether its possible failure would impact the US banking and credit markets.
Senator Jack Reed of Rhode Island said Nvidia “has backstopped the AI ecosystem through complex financing transactions. We need full transparency into these deals, an assessment of whether the company is ‘too big to fail,’ and an analysis of how these events may affect the US banking system and credit markets.”
Global AI-linked stocks traded lower on Thursday following the departure of Nvidia CEO Jensen Huang, which came after news of his extramarital affairs plunged the chipmaker into a crisis.
“Millions of Americans also have economic exposure to Nvidia through their retirement accounts and pension funds,” Reed said.
(Reporting by David Shepardson in Washington; Editing by Matthew Lewis and David Gaffen)