FBI probes Nvidia chief Jensen Huang over alleged Chinese spy affair

UPDATE - follow-up to Trump says FBI investigating Nvidia boss's affair with alleged Chinese spy: The FBI is investigating the affair between Nvidia chief executive Jensen Huang and a woman identified by US intelligence as an alleged Chinese spy. US President Donald Trump stated he spoke with Huang by phone on Monday and asked if he knew the woman was a spy. According to Trump, Huang said he had no idea and the president added that he genuinely believes him.

Market Impact

The revelations wiped about $250bn off the market value of Nvidia during trading on Monday as the share price dropped by about 4%. Nvidia has hired an independent investigation into the matter involving Alice Huang, who is also known as Huang Le and served as managing director of the Singaporean firm Megaspeed. Nvidia stated it has no reason to think its secrets or national security were compromised. Meanwhile, the FBI declined to comment on the probe and China rejected the claims as groundless and speculative.

Official Reactions

Trump said he believes Huang is suffering greatly and remains an honorable person who will emerge in good shape. Secretary of State Marco Rubio previously warned top Washington officials last spring in a memo that the Nvidia boss was close to a Chinese spy. Jensen Huang admitted he was unfaithful to his wife, apologised to his family, and promised to cooperate with the company probe while supporting US national security. He has also been asked to attend a joint closed-door briefing with congressional committees next week.

Context

Nvidia plays a central role in the global artificial intelligence boom through its powerful microchips and advanced semiconductors. Because of this technology, the firm sits directly at the center of the ongoing tech and security rivalry between the United States and China.