Trump: FBI Probing Nvidia CEO Huang Over Spy Claims

United States President Donald Trump has said the Federal Bureau of Investigation is looking into Nvidia CEO Jensen Huang over his relationship with a Chinese businesswoman alleged to be a spy for Beijing.

Mr Trump said on Monday that he was amazed by the allegations against Mr Huang, one of his closest allies in Silicon Valley. He said he had spoken to the chief executive, who told him he had no idea the woman was a spy.

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

The Nvidia CEO Huang case has already shaken the world’s most valuable chipmaker. Nvidia shares closed down more than four per cent on Monday after the company’s board launched an internal investigation on Sunday into whether Mr Huang had been targeted by a foreign intelligence effort.

Nvidia CEO Huang at the centre of the probe

Mr Huang told Nvidia’s staff that he had been unfaithful to his wife, without giving details of the relationship. The woman at the centre of the case was identified in earlier reporting as Alice Huang, and the affair has put a spotlight on the 63-year-old chief executive’s future.

Mr Huang is Nvidia’s fifth-largest shareholder, with a stake of about 3.6 per cent, according to LSEG data. He holds a tight grip on the company through an unusually flat structure in which dozens of executives report directly to him. Unlike Meta or SpaceX, Nvidia has no dual-class shares that would give its co-founder majority voting control.

The New York Times reported that Mr Trump was briefed on Mr Huang’s relationship with the woman, and that she was giving information to the Chinese government, and that the president chose not to act on the information at the time.

China rejected the claims. “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.

Shares fall as the board opens its own inquiry

Nvidia said its board has confidence in Mr Huang, who is widely seen on Wall Street as the most important person behind the artificial intelligence trade. Analysts acknowledged uncertainty around succession, but most do not expect the investigation to end with the longtime chief executive stepping 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.

Shareholders were quick to act. They sued Mr Huang and the company in a proposed class action on Monday, accusing them of defrauding shareholders by concealing Mr Huang’s ties with a suspected Chinese spy.

Lawmakers and advocates told Reuters that Congress was now more likely to pass laws tightening China’s access to artificial intelligence chips, in light of the news about Mr Huang’s relationship with a suspected Chinese intelligence agent.

What Trump was told, and what China said

Mr Huang’s ties with Mr Trump have coincided with several policy wins for Nvidia. The president has lavished praise on him and awarded him the National Medal of Science, the nation’s highest honour for scientific achievement, in October.

The same day Mr Trump gave Mr Huang the award, the president disclosed buying up to $1.6 million and selling up to $1 million of Nvidia shares during the summer. That disclosure has drawn fresh attention now that the FBI inquiry is public.

The case also lands at a sensitive moment for the chip industry. Anthropic has unveiled new Claude models as competition heats up ahead of a possible listing, and the race to build faster AI chips has become a central front in the rivalry between Washington and Beijing.

Six firms have registered to offer satellite internet in Pakistan, and the telecom regulator has proposed trial rules for new internet technology, but the Nvidia case shows how far the politics of chips now reaches beyond the industry itself.

What happens next

The FBI inquiry and Nvidia’s internal investigation will run in parallel, and neither has a set timetable. The board’s probe will look at whether Mr Huang was targeted by a foreign intelligence effort, while the FBI will examine the relationship itself.

Congress may move first. If lawmakers tighten China’s access to AI chips, the rules could reshape Nvidia’s business in its largest overseas market. The Express Tribune reported Mr Trump’s remarks, citing Reuters.

Frequently asked questions

What did Donald Trump say about Jensen Huang?

He said the FBI is looking into Mr Huang’s relationship with a Chinese businesswoman alleged to be a spy, and that Mr Huang told him he had no idea she was a spy.

How did Nvidia shares react?

Nvidia shares closed down more than four per cent on Monday, after the board launched an internal investigation on Sunday.

What is the board investigating?

The board is looking into whether Mr Huang was targeted by a foreign intelligence effort, and it has said it has confidence in him.

What did China say about the claims?

Chinese foreign ministry spokesperson Guo Jiakun called the spy claims a groundless accusation, slander and a smear.

Could the case change chip export rules?

Lawmakers told Reuters that Congress is now more likely to pass laws tightening China’s access to artificial intelligence chips.