President Donald Trump revealed that the FBI is investigating a personal relationship between Jensen Huang, Nvidia's CEO, and a Chinese businesswoman accused of being a Chinese spy. Nvidia has launched an internal investigation and faces shareholder lawsuits as its stock plunged, causing the company's market value to drop by $250 billion in a single day.
U.S. President Donald Trump disclosed that the Federal Bureau of Investigation (FBI) is examining the relationship between Jensen Huang, Nvidia's Chief Executive Officer, and a Chinese woman accused of being a spy for the Beijing government.
Trump stated he spoke by phone with Huang on Monday, asking if he was aware that the woman was a spy. Huang confirmed he did not know about it and expressed confidence that he would clear the investigation successfully.
The woman, named Alice Huang or Huang Le, is a former executive at Megaspeed in Singapore with business ties to Nvidia. U.S. intelligence believes she is linked to Chinese espionage operations. She is not related to Jensen Huang by family.
China's Ministry of Foreign Affairs denied the allegations, calling them baseless, speculative, and intended to damage China's reputation.
Nvidia announced that its board has formed an independent committee to investigate whether Huang has been targeted by foreign intelligence operations, affirming there is no reason to believe company secrets or national security have been compromised.
However, the news impacted Nvidia's stock, which dropped more than 4 percent on Monday (9 Nov), erasing about $250 billion in market value.
Additionally, Huang and Nvidia face a class-action lawsuit in California, accusing them of concealing the relationship with the suspected spy and deceiving shareholders. Meanwhile, U.S. lawmakers are calling for further investigations and may push for stricter controls on AI chip exports to China.
Huang previously admitted to infidelity toward his wife, apologized to his family, and pledged full cooperation with the investigation to protect Nvidia and support U.S. national security.
This case adds pressure on Nvidia, the world's second most valuable chipmaker after Apple, and a key player in the U.S.-China artificial intelligence rivalry.
U.S. officials have previously restricted exports of Nvidia's advanced AI chips to China. The H200 chip is allowed under certain conditions, while the highest-performance GB200 Blackwell chip remains banned from export to the Chinese market.
Meanwhile, Huang has been invited to participate in closed briefings with multiple congressional committees next week regarding anti-espionage measures and his relationship with Alice Huang, though it is unclear if he will attend.
Reports also indicate that Trump was aware of the relationship earlier and, in October, awarded Huang the U.S.'s highest science honor. Huang is known as a close ally of the president in Silicon Valley.
Analysts view that while the investigation creates uncertainty for Nvidia, it is unlikely Huang will step down as CEO, given his pivotal role in shaping the company's strategy since founding it in 1993.