Trump Says FBI Investigating Nvidia CEO Jensen Huang Over Spy Allegations

Fresh allegations swirling around Nvidia CEO Jensen Huang have drawn in the White House and federal law enforcement, after US President Donald Trump said the FBI was examining Mr Huang’s affair with a Chinese businesswoman alleged to be a spy for Beijing.

Mr Trump said he “was amazed” by the claims involving Mr Huang, whom the president described as among his closest allies in Silicon Valley.

According to Mr Trump, he discussed the matter directly with the Nvidia chief executive, who told him he had no idea the woman was a spy.

“I know the FBI is looking into it,” Mr Trump said. “I think that he’ll be in good shape,” he added.

Markets reacted swiftly. Nvidia shares ended the session down more than 4% after the company’s board opened an internal investigation into whether Mr Huang had been targeted by a foreign intelligence effort.

The inquiry, announced on Sunday, has thrown a harsh spotlight on the 63-year-old executive’s future at the helm of the world’s most valuable chipmaker, where he 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

In remarks to staff, Mr Huang told Nvidia employees he had been unfaithful to his wife, though he did not provide details about the relationship.

Mr Huang is Nvidia’s fifth-largest shareholder, holding a roughly 3.6% stake, according to LSEG data. He also maintains tight control through an unusually flat management structure in which dozens of executives report directly to him.

Still, Nvidia’s governance differs from other tech titans such as Mark Zuckerberg’s Meta Platforms or Elon Musk’s SpaceX: the chipmaker does not have dual-class shares that would grant co-founder Mr Huang majority voting control.

The New York Times reported that Mr Trump was briefed on Mr Huang’s relationship with the woman, including allegations that she was providing information to the Chinese government, and that the president chose not to act on the information.

In Beijing, China’s Foreign Ministry rejected the claims. “The so-called Chinese spy narrative is purely a groundless accusation, slander, and a smear,” spokesperson Guo Jiakun told reporters.

Mr Huang’s ties with Mr Trump have coincided with several policy developments that have benefited Nvidia. The president has also publicly praised Mr Huang, awarding him the nation’s highest honor for scientific achievement in October.

On the same day he presented the award, Mr Trump disclosed that he had 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 the central figure supporting the AI trade.

While analysts pointed to uncertainty over succession, most said they do not expect the investigation to end with the longtime CEO stepping down.

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 to sue Mr Huang and the company in a proposed class action yesterday, alleging they defrauded investors by concealing Mr Huang’s ties with a suspected Chinese spy.

Politicians and advocates told Reuters that the revelations about Mr Huang’s relationship with a suspected Chinese intelligence agent could make Congress more likely to pass legislation aimed at tightening China’s access to AI chips.

US House of Representatives Democratic leader Hakeem Jeffries said Congress needs more answers and urged the House to pass an annual defence bill that includes restrictions on chip sales to China.