FBI Opens Probe Into Nvidia CEO's Affair With Alleged Chinese Spy

The Federal Bureau of Investigation has launched an investigation into Nvidia CEO Jensen Huang regarding his relationship with a former executive suspected of acting as a spy for China.

President Donald Trump announced the probe during a White House press briefing on Tuesday. He stated that he had spoken directly with Huang about the situation. Trump described Huang as a "very honourable man" and a "fine person," adding that he believed the CEO would be in good shape.

The inquiry follows a report by The New York Times alleging that Huang had a close relationship with Alice Huang. The article identified her as a former executive from Megaspeed, a Singapore-based technology company. US intelligence agencies determined that she gathered information for Beijing. The two executives are not related by blood.

Nvidia began its own independent review of the matter on Sunday. The company said it was looking into claims that Huang was the target of a foreign intelligence effort. In a statement, the firm noted it had no reason to believe that national security or corporate secrets were compromised.

Huang addressed the controversy in an open letter posted on Nvidia's website. He acknowledged having an extramarital affair with a business executive. He apologized to his wife and the company but did not name the woman involved. The 63-year-old CEO said the news reports prompted the board to start the investigation. He pledged to cooperate fully and stated his commitment to protecting Nvidia and supporting America's national security.

China denied the allegations on Monday. Beijing called the spying claims "unsubstantiated" and a "smear" campaign. The state-owned Global Times suggested the report was an attempt to destabilize US-China relations. It noted that whenever relations begin to improve, outside forces often try to interfere.

Nvidia shares dropped 4.27 percent on Monday trading. The decline erased nearly $200 billion in market value in a single session. In extended trading early Tuesday, the stock recovered about 1 percent. The drop affected Huang's personal stake in the company, which is worth billions of dollars.

Analysts do not expect Huang to step down from his role. Stacy Rasgon, an analyst at Bernstein, argued that Huang is central to the company's long-term strategy. Rasgon described Huang as the person who sets the direction and pulls most of the company's strings.

Some shareholders have filed a proposed class action lawsuit against Nvidia. The suit accuses the company of defrauding investors by hiding Huang's ties to the suspected spy. The legal challenge adds pressure on the board as it weighs the findings of its independent investigation.

The dispute occurs while trade restrictions limit Nvidia's ability to sell advanced H200 chips to Chinese firms. Huang has lobbied Washington to loosen these limits, winning approval to sell the chips this year. The company remains the world's largest chipmaker and powers major AI systems, including ChatGPT and Google's Gemini.

Trump is scheduled to meet with Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation summit next week. When asked if he would raise the Nvidia investigation with his Chinese counterpart, Trump said he did not think so. He added that Xi might ask about it, but he hoped everything would be fine given Huang's past performance.