FBI investigating Nvidia chief over affair with alleged Chinese spy, says Trump

WASHINGTON — US President Donald Trump has confirmed that the FBI is investigating an affair between Nvidia Chief Executive Officer Jensen Huang and an alleged Chinese intelligence operative.

Speaking at a White House press briefing, President Trump disclosed that he spoke directly with Mr. Huang on Monday following media reports detailing Washington’s national security concerns.

“I asked him that question: ‘Did you have any idea she was a spy?’ He said, ‘I had no idea she was a spy,’ and I really believe him,” Trump told reporters, adding that he considers the tech executive an “honourable guy” and feels confident he will be cleared.

The FBI declined to comment on the matter, while Beijing’s foreign ministry dismissed the espionage allegations as “entirely groundless, speculative, and intended to smear and malign China.”

Market shock and corporate response

News of the federal inquiry and intelligence concerns erased approximately $250bn (£190bn) from Nvidia’s market capitalization on Monday, as the artificial intelligence chipmaker’s shares tumbled by more than 4 per cent.

The woman at the center of the probe, Alice Huang (also known as Huang Le), served as managing director of Singapore-based tech firm Megaspeed, an entity with existing commercial dealings with Nvidia. Intelligence reports indicate she is not related to Jensen Huang.

According to a New York Times report, US Secretary of State Marco Rubio alerted top administration officials in a confidential memorandum earlier this year regarding the relationship.

Nvidia confirmed it has commissioned an independent internal investigation, maintaining it has no reason to believe national security or proprietary corporate secrets were compromised:

• Executive Statement: Jensen Huang admitted to personal infidelity, apologizing to his family while affirming his commitment to “supporting America’s national security” and cooperating fully with internal and external reviews.
• Shareholder Action: Nvidia and its CEO were named in a proposed class-action lawsuit in California on Monday, alleging leadership defrauded investors by concealing ties to the suspected intelligence asset.
• Congressional Scrutiny: US Congressional committees have requested Mr Huang’s appearance at a closed-door security briefing scheduled for next week to examine Nvidia’s defense controls against foreign espionage.