FBI investigates Nvidia CEO over relationship with suspected Chinese spy

US President Donald Trump has confirmed that the FBI is investigating a case involving Jensen Huang, the founder and CEO of Nvidia, following reports that he had an extramarital relationship with a Chinese businesswoman suspected of working for Beijing's intelligence services.

The investigation has shaken one of the world's most influential technology companies, amid intensifying competition between Washington and China over advanced semiconductors and artificial intelligence.

Trump said on Monday, November 9, that he had personally spoken with Huang to ask whether he knew about the woman's alleged connections to Chinese intelligence. According to the US President, the Nvidia executive insisted he had been unaware of them.

"He told me he had no idea she was a spy, and I really believe him," Trump said, also expressing confidence that Nvidia's chief executive would emerge from the investigation without serious consequences.

The President confirmed that the FBI was examining the matter, but did not specify the scope of the inquiry or whether Huang himself was the subject of a criminal investigation.

Businesswoman linked to company investigated over chip exports to China

The woman involved in the case is Alice Huang, also known as Huang Le, a former executive at Megaspeed, a Singapore-based data centre company under investigation by US authorities over the alleged diversion of advanced semiconductors to China.

According to reports published by The New York Times and Financial Times, US intelligence agencies suspect that the woman may have been recruited by China's Ministry of State Security to gather information about Nvidia's chief executive and the technology developed by the company.

Chinese intelligence's alleged interest is believed to be connected to Washington's restrictions on exports of the most advanced chips, which are essential for training next-generation artificial intelligence systems.

Megaspeed reportedly purchased billions of dollars' worth of Nvidia equipment to establish data centres in Southeast Asia. US authorities are investigating whether some of those processors may have been illegally diverted to the Chinese market.

The company has denied allegations of illegal technology diversion, while Beijing has also rejected the espionage accusations.

Nvidia launches independent investigation into its founder

The controversy prompted Nvidia's board of directors to announce an independent investigation on Sunday, November 8, to determine whether Jensen Huang had been targeted by a foreign intelligence operation.

The inquiry will be overseen by a committee of independent directors, supported by external legal advisers, and will examine available information concerning the relationship between Huang and the suspected Chinese intelligence operative.

In an official statement, Nvidia said it currently had no reason to believe that corporate secrets had been compromised, nor that information relevant to US national security had been exposed.

The company also expressed confidence in Huang, who will continue carrying out his executive responsibilities while the investigation proceeds.

Huang himself has acknowledged having an extramarital relationship and apologised to his family. He has also pledged to cooperate with investigators to clarify the circumstances.

So far, there has been no evidence establishing that Huang disclosed confidential information or technological secrets to the woman under investigation.

Nvidia loses nearly $190 billion in market value

The controversy has also affected financial markets. Nvidia shares fell 4.3% during Monday's trading session, representing an estimated $190 billion loss in market capitalisation.

In addition, a group of shareholders has filed a lawsuit against Nvidia and Jensen Huang in a California federal court, alleging that the company failed to disclose relevant information about its chief executive's relationship with the Chinese businesswoman.

The plaintiffs argue that the situation may have exposed Nvidia to financial, reputational and national security risks.

However, these allegations remain subject to judicial examination and have not been established in court.