Trump says FBI investigating Nvidia CEO's affair with alleged Chinese spy

US President Donald Trump has confirmed that the FBI is investigating the affair between Nvidia chief executive Jensen Huang and a woman alleged to be a Chinese spy. Mr Trump stated he spoke with Mr Huang on Monday following reports that the US government believed the executive had been targeted in a Chinese espionage operation. "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," Mr Trump told reporters at the White House, though he did not elaborate on when the probe began.

The FBI declined to comment on the matter when contacted. According to a New York Times report, US intelligence officials believe Alice Huang, also known as Huang Le, was a spy for Beijing. The report further stated that Secretary of State Marco Rubio sent a memo to top Washington officials last spring warning that the Nvidia boss was in a close relationship with a Chinese spy. Alice Huang served as the managing director of the Singaporean company Megaspeed, which has conducted business with Nvidia, and is not related to the Nvidia chief.

Nvidia, which is central to the global development of AI through its microchips, has commissioned an independent investigation into the affair. The company stated it has no reason to believe its secrets or national security were compromised. However, the revelations caused the value of Nvidia to fall by approximately $250bn (£190bn) during trading on Monday, as the firm’s share price dropped by more than 4%. Additionally, a proposed class action lawsuit was filed against Nvidia and Mr Huang in California on Monday, accusing them of defrauding shareholders by concealing the executive's ties with the woman, who is suspected of seeking to help smuggle Nvidia products to China.

Mr Huang, who has been married to his wife, Lori, since 1985, admitted in an email to employees on Sunday that he had an affair and would cooperate with the internal probe. The firm is a major focus in the AI rivalry between the US and China, with Washington officials treating the company’s exports to Beijing as a matter of national security. US intelligence agencies reportedly believe Alice Huang pushed the CEO to lobby Mr Trump for relaxed export controls on Nvidia sales in China, which he has done publicly on multiple occasions.

Beijing has rejected the claims that Mr Huang was targeted. The Chinese foreign ministry stated that the allegations were "entirely groundless, speculative and intended to smear and malign China." Meanwhile, prominent figures including Elon Musk and hedge fund manager Bill Ackman have expressed support for Mr Huang. Mr Musk posted "I agree" in response to a defense of the CEO, while Mr Ackman noted that Mr Huang is "an incredible human" who "takes full responsibility as he should."