FBI Investigates Alleged Chinese Spy Links to Nvidia CEO Jensen Huang

US President Donald Trump said on Monday that the FBI was investigating allegations involving Nvidia Chief Executive Jensen Huang and a Chinese businesswoman suspected of having links to Beijing’s intelligence services.

Trump said he was surprised by the allegations against Huang, one of his closest allies in Silicon Valley. He added that he had spoken with the Nvidia chief, who told him he had no knowledge that the woman was allegedly a spy.

“I know the FBI is looking into it,” Trump said. “I think that he’ll be in good shape.”

Nvidia shares fell more than 4% on Monday after the company’s board launched an internal investigation into whether foreign intelligence operatives had targeted Huang.

Nvidia Shares Fall as Board Opens Investigation

The investigation, announced on Sunday, has drawn attention to the future of Huang, 63, who leads the world’s most valuable chipmaker and remains one of the most prominent figures in the artificial intelligence industry.

Huang told Nvidia employees that he had been unfaithful to his wife but did not disclose details of the relationship.

P@SHA Urges NCCIA to Stop Confusing Legitimate IT Companies With Scam Centres

The CEO enjoys widespread recognition, particularly in Asia, where he regularly interacts with fans, takes photographs and signs autographs.

According to LSEG data, Huang owns approximately 3.6% of Nvidia, making him the company’s fifth-largest shareholder. He also maintains significant influence through an unusually flat management structure, in which dozens of executives report directly to him.

Unlike Meta Platforms, led by Mark Zuckerberg, and SpaceX, led by Elon Musk, Nvidia does not have a dual-class share structure that gives its co-founder majority voting control.

China Rejects Allegations Against Businesswoman

The New York Times reported that Trump had received a briefing about Huang’s relationship with the woman and allegations that she was providing information to the Chinese government. The newspaper said the president chose not to act on the information.

China rejected the allegations.

“The so-called Chinese spy narrative is purely a groundless accusation, slander, and a smear,” Chinese Foreign Ministry spokesperson Guo Jiakun told reporters in Beijing.

The New York Times previously identified the woman as Alice Huang, an unrelated former executive of Singapore-based company Megaspeed. US authorities reportedly investigated her and concluded that she was a Chinese intelligence asset.

Megaspeed did not immediately respond to a request for comment on Monday, which was a public holiday in Singapore.

Alice Huang did not respond to the newspaper when it first reported the relationship. Reuters said it could not establish her location to seek comment.

Trump’s Relationship With Huang Under Scrutiny

Huang’s relationship with Trump has coincided with several favourable policy developments for Nvidia.

Trump has repeatedly praised the CEO and awarded him the United States’ highest honour for scientific achievement in October.

On the same day, Trump disclosed that he had bought up to $1.6 million and sold up to $1 million worth of Nvidia shares during the summer.

The developments have brought renewed attention to the relationship between the administration and the chipmaker.

Analysts Say Huang Remains Central to Nvidia

Nvidia said its board continues to have confidence in Huang. Most analysts do not expect the investigation to force the longtime CEO to leave, although questions remain about succession planning.

“Nvidia is not an ordinary company and Jensen is not an ordinary CEO; he is Nvidia, clearly sets the long-term strategy and direction, and pulls most of the company’s strings himself,” said Stacy Rasgon, an analyst at Bernstein.

Meanwhile, Nvidia shareholders filed a proposed class-action lawsuit against Huang and the company on Monday. They accused them of misleading investors by concealing Huang’s alleged connections with a suspected Chinese intelligence asset.

US Lawmakers Seek Tighter Controls on Chip Sales to China

The allegations have also renewed debate in Washington over China’s access to advanced artificial intelligence chips.

Lawmakers and advocates told Reuters that Congress could become more likely to pass legislation restricting chip sales to China.

House Democratic Leader Hakeem Jeffries said Congress needed more answers. He also called on the House to pass an annual defence bill that includes restrictions on chip exports to China.

The investigation and its political fallout could therefore have implications beyond Nvidia, potentially affecting US technology policy and the wider semiconductor industry.