The CEO of an Alabama AI infrastructure company has been accused of selling Nvidia GPUs for illegal exports.

Nvidia CEO Jensen Huang is urging the U.S. and China to improve trade relations, arguing that access to the Chinese market is essential for American competitiveness in artificial intelligence (AI).

The stock market’s early rally fizzled by the afternoon, with the S&P 500 swinging from a nearly 2% gain to a slight selloff by midday. Nvidia, which initially jumped after reporting strong earnings, reversed 1% into the red along with the rest of the megacap AI trade.

Nvidia shares were initially up after an earnings report that included raised revenue guidance for the next quarter. But shares closed 3% lower.

Nvidia has soothed worries about AI demand for now, and dispelled fears of a bubble bursting. Investors piled into tech and AI names after its Q3 results.

Wall Street forecasts another booming quarter of growth for Nvidia’s AI chip business. Here are the crucial numbers to watch when the tech giant releases results after the market close on Wednesday: Revenue: Expected to rise 56% from a year earlier to $54.

Prosecutors have accused Brian Raymond, founder of AI infrastructure and consulting company Bitworks, and three others of selling coveted Nvidia chips to unspecified Chinese companies.

Michael Burry of "The Big Short" fame once again went after Nvidia over its chips' longevity, its stock dilution, and "give-and-take deals" in AI.

The chip maker reported record revenue, beating Wall Street estimates and increasing current-quarter guidance.