President Donald Trump revealed Monday that the FBI is investigating Nvidia CEO Jensen Huang’s relationship with a woman U.S. intelligence officials believe to be a Chinese spy, following revelations of an extramarital affair that has triggered both criminal and corporate investigations into America’s second-largest public company.
White House Response and Federal Investigation
Trump spoke with Huang on Monday after Nvidia disclosed late Sunday that it launched an independent investigation into the matter. The president told reporters he believed Huang had no knowledge the woman was a spy. The Justice Department is conducting a criminal investigation into Megaspeed, a Singaporean data center company suspected of smuggling Nvidia’s artificial intelligence chips into China in violation of strict U.S. export controls. The probe, led by the Justice Department’s National Security Division alongside the FBI and the Commerce Department’s Bureau of Industry and Security, focuses on whether China recruited Alice Huang, a Megaspeed executive, to spy and assist in smuggling AI chips.
Huang admitted being unfaithful to his wife and apologized to Nvidia employees on Sunday. The Nvidia board announced its investigation, stating the CEO had been targeted by a foreign intelligence effort. Trump expressed hope that Huang would remain at Nvidia’s helm, calling him a high-quality person and an amazing guy. Nvidia has confirmed Huang will continue as CEO despite the scandal.
Market and Congressional Reaction
Nvidia shares fell 4.2 percent in Monday trading, making it the worst performer in both the Dow and Nasdaq indices, bucking overall market trends. The developments have sparked intense congressional scrutiny from both parties. House Minority Leader Hakeem Jeffries, likely to become the next speaker in January, demanded a full briefing on the issues. Senators Elizabeth Warren and Jim Banks issued a joint statement calling for decisive congressional action on oversight of AI-linked companies, stating the situation raises urgent national security concerns.
International Denials and Corporate Impact
China’s Foreign Affairs Ministry dismissed the allegations Monday, calling them unsubstantiated smears against China. The controversy centers on whether Megaspeed violated export controls by shipping Nvidia’s advanced AI chips to Chinese customers, a serious breach of U.S. national security restrictions designed to prevent China from accessing cutting-edge American technology. Jensen Huang and Alice Huang are not related. The Justice Department and Nvidia declined to comment on Trump’s remarks. The investigation represents a critical test for oversight of American technology companies whose products carry strategic importance in the competition with China over artificial intelligence capabilities.