FBI probe rocks Nvidia CEO over China spy claims

US President Donald Trump has confirmed that the FBI is investigating Nvidia chief executive Jensen Huang over reports of his alleged relationship with a Chinese woman suspected of having links to Beijing’s intelligence services.

Speaking to reporters on Monday, Trump said he was surprised by the allegations involving Huang, who is considered one of his closest allies in the technology industry.

Trump said he had spoken with the Nvidia chief, who told him he was unaware that the woman was allegedly working as a Chinese spy. The president added that the FBI was looking into the matter but expressed confidence that Huang would emerge in a favourable position.

The controversy has intensified scrutiny of the 63-year-old executive, whose leadership has played a central role in Nvidia’s rise as the world’s most valuable chipmaker amid the global artificial intelligence boom.

Nvidia’s board has launched an internal investigation to determine whether Huang was targeted as part of a foreign intelligence operation. The company announced the probe on Sunday, while its shares fell more than 4% in Monday’s trading session.

Huang has reportedly acknowledged being unfaithful to his wife in a message to Nvidia employees, although he did not disclose details of the relationship.

Reports have linked him to Alice Huang, a former executive of Singapore-based company Megaspeed. US authorities previously investigated her and reportedly concluded that she was an asset of Chinese intelligence.

The New York Times reported that Trump had been briefed on the relationship and allegations that information was being passed to the Chinese government. However, the president reportedly decided not to take action at the time.

China has strongly rejected the accusations. Foreign Ministry spokesperson Guo Jiakun described the claims linking the woman to Chinese intelligence as baseless allegations, slander and an attempt to damage reputations.

The controversy has also raised questions about Huang’s position at Nvidia. He holds an approximately 3.6% stake in the company, making him its fifth-largest shareholder, according to LSEG data. His leadership structure gives him considerable influence, with dozens of senior executives reporting directly to him.

Despite the growing scrutiny, Nvidia’s board has expressed confidence in Huang. Most market analysts do not expect the investigation to force him out of the company, although the issue has renewed discussions about succession planning.

The situation has also triggered legal action. Nvidia shareholders filed a proposed class-action lawsuit against Huang and the company on Monday, accusing them of misleading investors by concealing his alleged connections with a suspected Chinese intelligence operative.

The controversy could also have consequences for US-China technology relations. American lawmakers and policy advocates believe the developments may strengthen efforts to restrict China’s access to advanced artificial intelligence chips.

House Democratic leader Hakeem Jeffries has called for further answers and urged lawmakers to pass an annual defence bill containing restrictions on chip sales to China.

The investigation comes as Nvidia remains at the centre of the global AI industry and Huang continues to maintain close ties with Trump. The US president recently awarded him the country’s highest honour for scientific achievement.

The outcome of the investigation could have implications beyond Nvidia, particularly for the company’s leadership, investor confidence and Washington’s technology policy towards Beijing.