Fresh scrutiny has landed on Nvidia and its high-profile chief executive after US President Donald Trump said federal investigators are examining allegations that Jensen Huang had an affair with a Chinese businesswoman accused of spying for Beijing.
Mr Trump said he “was amazed” by the claims involving Mr Huang, a prominent figure in Silicon Valley and, the president noted, among his closest allies.
According to Mr Trump, he discussed the matter directly with the Nvidia CEO, who told him he did not know the woman was allegedly operating as a spy.
“I know the FBI is looking into it,” Mr Trump said. “I think that he’ll be in good shape,” he added.
Nvidia shares finished down more than 4% after the company’s board initiated an internal review to determine whether Mr Huang may have been the target of a foreign intelligence operation.
The inquiry, announced on Sunday, has intensified attention on the 63-year-old executive’s prospects at the helm of the world’s most valuable chipmaker, where Mr Huang has also become the AI boom’s most prolific salesman.
US President Donald Trump said the Nvidia CEO told him that he had no idea that the woman was a spy
Mr Huang, in remarks to Nvidia employees, acknowledged he had been unfaithful to his wife, while withholding specifics about the relationship.
He remains Nvidia’s fifth-largest shareholder, holding roughly a 3.6% stake, according to LSEG data, and is known for maintaining close control over the company through an unusually flat structure in which dozens of executives report directly to him.
Still, Nvidia does not have the dual-class share structure used at companies such as Mark Zuckerberg’s Meta Platforms or Elon Musk’s SpaceX that would provide co-founder Mr Huang with majority voting power.
The New York Times reported that Mr Trump was briefed on the relationship and on claims that the woman was passing information to the Chinese government, and that the president opted not to act on that information.
“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.
Mr Huang’s ties with Mr Trump have unfolded alongside several policy developments favourable to Nvidia, and the president has publicly celebrated the CEO, presenting him with the nation’s highest honour for scientific achievement in October.
That same day, Mr Trump also disclosed that he bought up to $1.6 million and sold up to $1 million of Nvidia shares during the summer.
‘Not an ordinary CEO’
Nvidia said its board remains confident in Mr Huang, who many on Wall Street view as central to the AI trade.
Analysts said the situation raises questions about succession planning, but most do not expect the internal investigation to end with the longtime CEO stepping aside.
Nvidia shares closed down more than 4% after the company’s board launched an internal investigation
“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.
Nvidia shareholders moved quickly, filing a proposed class action yesterday that accuses Mr Huang and the company of defrauding investors by concealing his ties to a suspected Chinese spy.
Politicians and advocates told Reuters that Congress is now more likely to advance legislation tightening China’s access to AI chips in response to revelations about Mr Huang’s affair.
US House of Representatives Democratic leader Hakeem Jeffries said lawmakers need more answers and urged the House to approve an annual defence bill that includes curbs on chip sales to China.
