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: US President Donald Trump confirmed that the FBI is investigating Nvidia CEO Jensen Huang over his past relationship with an alleged Chinese spy. Trump stated that he spoke with Huang by phone on Monday and asked him directly if he knew the woman was a spy. According to Trump, Huang replied that he had no idea, and the president added that he genuinely believes him and considers him an honourable person who is suffering greatly.

Investigation and Fallout

Intelligence officials believe the woman, identified as Alice Huang or Huang Le and not related to the CEO, was a Beijing spy. She served as managing director of Megaspeed, a Singaporean company with business dealings with Nvidia. Secretary of State Marco Rubio sent a memo last spring warning top Washington officials about the close relationship. The revelations wiped about 250 billion dollars from Nvidia's value on Monday as shares dropped over 4 percent. According to The Hindu - International, top Democrats Mark Warner and Hakeem Jeffries expressed interest in a full briefing, with Jeffries noting the issue came up in a closed-door CIA session. Additionally, Huang and Nvidia face a proposed class action lawsuit in California filed Monday accusing them of defrauding shareholders by hiding the ties.

Responses and Context

Nvidia has launched its own independent investigation and stated it has no reason to believe company secrets or national security were compromised. Jensen Huang admitted he was unfaithful to his wife, apologised to his family, and pledged full cooperation. Beijing rejected the allegations as groundless and intended to smear China. Trump noted he is sure Chinese leader Xi Jinping will raise the issue during their upcoming meeting in Shenzhen.

Context

Nvidia designs advanced computer chips that power modern artificial intelligence technology, making the company a central player in the global technology race between the United States and China. Because the US tightly controls chip exports to Beijing on national security grounds, high-level corporate ties to foreign intelligence targets draw intense scrutiny from federal investigators and lawmakers.