Donald Trump
FBI investigating Nvidia CEO over alleged China spy links
Photo: US President Donald Trump
US President Donald Trump said on Monday that the FBI was investigating Nvidia CEO Jensen Huang’s relationship with a Chinese businesswoman suspected of working as a spy for Beijing, deepening scrutiny of the head of the world’s most valuable chipmaker.
Trump said he was “amazed” by the allegations involving Huang, one of his closest allies in Silicon Valley. He added that he had spoken to the Nvidia chief executive, 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,” he added.
Nvidia shares closed more than 4 percent lower on Monday after the company’s board launched an internal investigation into whether Huang had been targeted by a foreign intelligence operation. The investigation was announced on Sunday.
The controversy has raised questions about the future of the 63-year-old executive, whose leadership has been central to Nvidia’s dominance in the artificial intelligence industry.
Huang recently told Nvidia employees that he had been unfaithful to his wife but did not disclose details of the relationship. Known for his signature leather jacket, he enjoys considerable popularity worldwide, particularly in Asia, where he frequently interacts with fans.
According to LSEG data, Huang owns approximately 3.6 percent of Nvidia, making him the company’s fifth-largest shareholder. He also maintains significant control over its operations through a relatively flat management structure in which dozens of executives report directly to him.
However, unlike Meta CEO Mark Zuckerberg and SpaceX CEO Elon Musk, Huang does not have dual-class shares that would give him majority voting control of Nvidia.
The New York Times reported that Trump had been briefed on Huang’s relationship with the woman and allegations that she was providing information to the Chinese government. The report said the president chose not to act on the information.
Chinese Foreign Ministry spokesperson Guo Jiakun rejected the allegations.
“The so-called Chinese spy narrative is purely a groundless accusation, slander, and a smear,” he told reporters in Beijing.
Huang’s relationship with Trump has coincided with several favorable policy developments for Nvidia. In October, Trump awarded him the country’s highest honor for scientific achievement.
On the same day, Trump disclosed that he had purchased up to $1.6 million and sold up to $1 million worth of Nvidia shares during the summer.
Analysts doubt Huang will step down
Nvidia said its board has confidence in Huang, whom many Wall Street analysts consider a central figure in the artificial intelligence boom.
Although analysts acknowledged uncertainty surrounding the company’s succession plans, most do not expect the investigation to force Huang to step down.
“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, accusing them of misleading investors by concealing his alleged ties to a suspected Chinese spy.
The controversy could also accelerate congressional efforts to restrict China’s access to advanced AI chips. House Democratic Leader Hakeem Jeffries said Congress needed further answers and urged lawmakers to pass an annual defense bill containing restrictions on chip sales to China.
The New York Times reported last month that Huang had a relationship with Alice Huang, an unrelated former executive of Singapore-based company Megaspeed. US authorities investigated her and concluded that she was a Chinese intelligence asset.
Megaspeed did not immediately respond to a request for comment on Monday, a public holiday in Singapore. Alice Huang also did not respond to the newspaper’s earlier request for comment. Reuters could not determine her whereabouts to seek comment.
Source: Reuters (Adapted)
