US President Trump defends Nvidia chief over alleged spy links as shares fall

US President Donald Trump stated on Monday that he believes Nvidia chief executive Jensen Huang had no idea that a businesswoman linked to him was allegedly passing information to China. Trump told reporters he spoke with Huang, who denied knowing the woman was a spy. According to the BBC, Trump told reporters at the White House that the FBI is looking into the issue, though the FBI declined to comment. Reports indicate that US intelligence officials believe Alice Huang, a former executive at Singapore-based Megaspeed and also known as Huang Le, was a spy for Beijing and targeted the Nvidia boss in an espionage campaign. Secretary of State Marco Rubio reportedly sent a memo to top Washington officials last spring warning about the relationship, and the New York Times first reported the ties last month. Nvidia stated it has commissioned an independent investigation and has no reason to believe company secrets or national security were compromised, while Beijing rejected the claims as entirely groundless. Following the reports, a proposed shareholder class action lawsuit was filed Monday in federal court in San Jose, accusing Nvidia and Jensen Huang of misleading investors and concealing national security concerns and his relationship with Alice Huang. The lawsuit notes that Huang told employees he was unfaithful to his wife. Nvidia's board also announced its own probe on Sunday. The developments knocked the company's share price down by more than 4%, reaching a seven-month low and wiping about $250 billion off its value.

Context

Nvidia designs advanced computer chips that are central to artificial intelligence technology, making the company a major focus in the technology race between the US and Washington's trade restrictions on Beijing. Because of these national security interests, close ties between technology leaders and individuals linked to foreign governments draw intense scrutiny from US officials and investors alike.