{"text":[[{"start":9.3,"text":"A sell-off in shares of Chinese start-ups that make AI models deepened on Friday over investor fears that the scandal engulfing Nvidia would lead to tighter restrictions from Washington on chip sales."}],[{"start":21.66,"text":"Large language model developers Z.ai and MiniMax sank 10 per cent and 8 per cent respectively in Hong Kong on Friday. Z.ai has shed nearly a fifth of its market value in the past two days, while MiniMax has lost 15 per cent."}],[{"start":37.48,"text":"The sell-off extended to big Chinese tech groups such as Alibaba and Tencent, which depend on Nvidia chips to train their AI models. This week’s rout wiped a combined $75bn of market value off Alibaba and Tencent after their stocks fell 14 per cent and 8 per cent respectively."}],[{"start":56.52,"text":"Despite export restrictions in place for the most advanced chips, many Chinese companies still rely on some Nvidia processors to develop their AI models."}],[{"start":65.4,"text":"Jensen Huang, who resigned as Nvidia’s chief executive on Thursday after revelations of extramarital affairs, including with an alleged Chinese spy, was a proponent of keeping sales open to Chinese companies, even as the mood in Washington turned hawkish."}],[{"start":80.24,"text":"Without Huang at the helm, “the US might tighten chip export controls at the policy and regulatory levels”, said Kenny Ng, a strategist at Everbright Securities International. “Chinese tech companies with high computing power demands may be affected.”"}],[{"start":94.96,"text":"The unfolding scandal at Nvidia has generated consternation in China. The foreign ministry on Thursday warned the US against using Huang’s relationship with an alleged Chinese spy as a pretext for tightening restrictions on exports of critical technologies. The Global Times, the Communist Party’s nationalist tabloid, suggested Huang’s downfall was part of a “political witch-hunt”."}],[{"start":117.06,"text":"Huang had said selling chips to China benefited the US because it would make the country reliant on American technology in the race to build cutting-edge AI."}],[{"start":126.12,"text":"Beijing has made a concerted push to develop domestic chipmaking capabilities in everything from the graphics processing units that Nvidia makes to the complex machine tools used for manufacturing the chips themselves."}],[{"start":138.88,"text":"National and local governments have invested heavily in semiconductor companies, which have benefited from the Nvidia scandal and concerns over tighter export controls. Shares of Chinese chip designer Cambricon Technologies have soared more than 20 per cent this week."}],[{"start":153.6,"text":"Some investors are nervous that Huang’s downfall, so soon after the US midterm elections, might be the start of an orchestrated campaign against proponents of greater US-China engagement."}],[{"start":163.84,"text":"“People are assuming the story will not end with Jensen,” said Song Zhe, a senior investment specialist at BNP Paribas Asset Management. “People don’t know where this will end.”"}],[{"start":175.52,"text":"Shares of Chinese manufacturers of the optical equipment needed for data centre chips have also slumped over fears of tighter US restrictions. Zhongji Innolight and Eoptolink both fell more than 8 per cent on Friday."}],[{"start":187.92,"text":"“There will be more and more uncertainty for those Chinese suppliers,” said Song."}],[{"start":197.64,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1794572065_5096.mp3"}