The Federal Bureau of Investigation (FBI) is reportedly investigating Nvidia chief executive Jensen Huang's relationship with a Chinese businesswoman suspected of being an intelligence asset for Beijing. President Donald Trump publicly acknowledged the probe on Monday, stating he believed Huang would ultimately be cleared of wrongdoing.
Nvidia CEO Under Scrutiny
According to Trump, Huang, 63, asserted he had no knowledge of the woman's alleged espionage activities. While Huang has admitted to marital infidelity, he has not disclosed specifics of the relationship in question. The controversy intensified following a New York Times report that identified the woman as Alice Huang, a former executive at Singapore-based data center firm Megaspeed. US authorities reportedly concluded she was a Chinese intelligence asset, and Megaspeed itself has faced scrutiny over suspicions of facilitating China's access to advanced AI chips restricted under US export controls.
Company Response and Market Impact
Nvidia's board of directors announced an independent investigation into whether their chief executive had been targeted by a foreign intelligence operation. Despite the probe, the company expressed continued confidence in Huang's leadership. However, the news sent Nvidia shares plummeting more than 4% on Monday, reaching a seven-month low. The board maintains that there is no reason to believe US national security or Nvidia's trade secrets have been compromised.
Political Dimensions and Congressional Calls
Jensen Huang's close relationship with President Trump has also come under scrutiny. Huang has been a frequent presence in Washington, advocating for Nvidia's advanced chip sales to China. He traveled with Trump to China in May and attended a White House state dinner. The New York Times reported that Trump was briefed on Huang's relationship with the alleged spy but chose not to act at the time.
Senator Chris Coons has called for a congressional investigation into Huang and Nvidia, seeking to determine if national security was compromised. House Democratic leader Hakeem Jeffries echoed these concerns, urging the passage of a defense bill with stricter restrictions on chip sales to China.
The timing of Huang's relationship with Trump coincided with favorable policy developments for Nvidia, including the administration's decision to permit exports of its H200 processors to China in exchange for a 25% fee. Trump also awarded Huang the nation's highest scientific honor in October.
Shareholder Lawsuit and China's Denial
Separately, Nvidia shareholders have filed a proposed class-action lawsuit, accusing Huang and the company of concealing his alleged ties to the woman. Meanwhile, China has vehemently rejected the allegations. Foreign Ministry spokesperson Guo Jiakun dismissed the Chinese spy narrative as a "groundless accusation, slander, and a smear."