Jack Reed wants Nvidia tested for 'too big to fail' risk

Reed, a Democratic senator, said Thursday that an assessment is needed to determine whether Nvidia is too big to fail, and what that scenario would mean for the US banking system and credit markets. In a statement, he pointed to the company's role in propping up the AI ecosystem through complex financing transactions. He demanded full transparency into those deals.

Reed also weighed in on reports that President Donald Trump was briefed on intelligence linking a suspected Chinese spy to former CEO Jensen Huang. He called the reports disturbing. If true, he said, they amount to an extraordinary failure of presidential responsibility.

On export policy, Reed said the Trump administration reversed course on critical restrictions, allowing Nvidia to sell advanced AI chips to China despite what he described as clear national security risks. He said the crisis raises alarming questions about technology's security. Huang's resignation, Reed added, does not excuse his recklessness.