Trump Says Nvidia CEO Jensen Huang 'Suffering' Over Chinese Spy Affair

President Donald Trump has confirmed that the FBI is investigating Nvidia CEO Jensen Huang’s affair with an alleged Chinese spy, offering his first public assessment of the embattled tech executive’s involvement in the escalating scandal.

“I know the FBI is looking into” the affair, Trump told reporters at the White House, though he declined to provide specifics about when the investigation was launched. Trump said he spoke directly with Huang on Monday to ask a pointed 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 said, adding that he views Huang as an “honourable guy” who will “be in good shape” once investigations conclude.

The Fallout Continues

The allegations have triggered a financial earthquake. Nvidia’s share price plummeted more than 4% on Monday, wiping approximately $250 billion from the company’s market value. This is significant given that Nvidia, the world’s second most valuable company after Apple, has become central to the global AI arms race.

The scandal centers on Alice Huang (also known as Huang Le), who US intelligence officials believe is a Chinese spy. She is not related to Jensen Huang. According to reporting by the New York Times, Secretary of State Marco Rubio sent a memo to top Washington officials in spring warning that the Nvidia boss was in a close relationship with a Chinese spy.

Alice Huang worked as managing director of Singaporean company Megaspeed, which has had business dealings with Nvidia. The connection raises serious national security concerns, particularly given America’s aggressive efforts to restrict Nvidia’s most advanced semiconductor sales to China.

A Matter of National Security

Nvidia’s dominance in AI chip design has made the company a strategic battleground between Washington and Beijing. The White House previously imposed export controls on the company’s advanced products, treating them as national security matters. Recently, the Trump administration allowed sales of Nvidia’s H200 chip to Chinese customers under certain conditions, though the company’s most advanced AI semiconductors remain blocked from Chinese markets.

Trump emphasized his concern that allowing China to lead in AI development could “supercharge Beijing’s military and surveillance capabilities.” He noted he was “sure” Chinese leader Xi Jinping would “ask me about it” when they next meet.

Jensen Huang has admitted to being “unfaithful” to his wife and apologized for hurting her and their children. He’s committed to “protecting Nvidia and supporting America’s national security” while cooperating with an independent investigation the company launched.

Congressional Scrutiny Looms

Huang has been requested to appear for a joint closed-door briefing before several Congressional committees next week. The letter specifically references the briefing would cover “Nvidia’s security protocols against foreign adversary espionage and your interactions with a publicly reported People’s Republic of China intelligence asset: Megaspeed executive Alice Huang.”

It remains unclear whether Huang will actually appear. Meanwhile, a proposed class action lawsuit filed in California accuses Huang and Nvidia of defrauding shareholders by concealing his ties to the suspected spy, alleging the company misled media about the relationship.

Despite the turmoil, Trump appeared sympathetic to Huang’s plight. “I hope there’s no problem, I believe he is suffering greatly,” the president said, noting he called Huang on Monday “just to see if he’s feeling alright.”

Beijing has dismissed the allegations entirely. China’s foreign ministry said claims that Huang was targeted were “entirely groundless, speculative and intended to smear and malign China.”

Nvidia remains adamant that it has “no reason to believe the company’s secrets or national security were compromised.” Still, the firm’s workforce faces intense scrutiny. When BBC reporters visited Nvidia’s Santa Clara headquarters on Monday, some workers said it was business as usual, though the international attention told a different story. Related investigation into corporate espionage continues to develop.

Huang founded Nvidia in 1993 with two other engineers. The company originally designed gaming chips but shifted focus to AI development, transforming itself into one of the world’s most powerful technology firms. That very success has now made it a target in an increasingly tense technological competition between superpowers. When a nation’s military edge depends on your chips, even personal relationships become matters of state.

Source: BBC