Trump says FBI is examining allegations involving Nvidia chief Jensen Huang
Nvidia has opened an independent inquiry into claims its chief executive was targeted by foreign intelligence, while China denies the spying allegations.
By Hassan Ellis ·
President Donald Trump said the FBI was examining allegations surrounding Nvidia chief executive Jensen Huang's affair with a woman reportedly linked to Chinese intelligence. Speaking at a White House briefing, Trump defended Huang's character and said the executive had told him he did not know the woman was allegedly a spy.
The allegations follow a New York Times report describing a close relationship between Huang and Alice Huang, a former executive at Singapore-based technology company Megaspeed. According to the newspaper, US intelligence concluded that she was collecting information for Beijing. Alice Huang and the Nvidia chief are not related.
Nvidia announced on Sunday that it had commissioned an independent investigation into allegations that its chief executive had been targeted by a foreign intelligence operation. The company said it had no grounds to believe that national security or its confidential information had been compromised.
In an open letter published on Nvidia's website, Huang, 63, acknowledged an extramarital affair with a business executive and apologised to his wife and the company. He did not identify the woman. He said reporting about the relationship and possible national security implications had prompted the board's inquiry, adding: "I support the investigation and will cooperate fully."
China rejected the allegations on Monday, calling them unsubstantiated and describing them as a campaign to smear Beijing. Trump, who is scheduled to meet Chinese President Xi Jinping at next week's Asia-Pacific Economic Cooperation summit, gave no firm indication that he would raise the matter. He described Huang as a "very honourable man".
The controversy has prompted questions about Huang's future at Nvidia, although most analysts do not expect him to leave. Bernstein analyst Stacy Rasgon highlighted the chief executive's central role in setting the company's strategy and overseeing its operations. Some shareholders have nevertheless filed a proposed class action lawsuit alleging that Nvidia defrauded investors by hiding Huang's connections to the suspected spy.
Nvidia shares closed Monday 4.27% lower, erasing almost $200 billion, or £148 billion, from its market value and reducing the value of Huang's holdings by billions of dollars. The stock regained about 1% in extended trading early Tuesday. Its Monday decline contrasted with gains of 2.15% for the Dow Jones Industrial Average, 2.35% for the S&P 500 and 2.74% for the Nasdaq.
The company also faces restrictions in the United States and China that effectively prevent sales of its advanced H200 chips to Chinese businesses, potentially costing billions in revenue. Huang has pushed Washington in recent years to ease chip export limits and secured Trump's approval for H200 sales this year.
Nvidia, which began by making graphics hardware for gamers, is now the world's largest chipmaker and a major supplier behind the artificial intelligence boom. Its technology powers services including ChatGPT and Google's Gemini, along with Britain's most powerful supercomputer. China has sought global leadership in AI, with Xi setting a 2030 target for exceeding American AI systems' capabilities.
