The current administration loves Nvidia and Huang. Huang has close ties to the administration, so they chose to ignore the warnings because they didn't want to kill their golden goose. Data centers are very unpopular, but people don't blame Nvidia for them.

It was really just the spy scandal that did him in. Huang was also having an affair with two Nvidia employees, but at least Kimberly Powell was common knowledge at Nvidia. No one cares if the guy cheats, but sleeping with a Chinese spy will destroy trust in the company.