FBI to investigate Nvidia CEO over affair with alleged Chinese spy, Trump says

Donald Trump has said the FBI is looking into Nvidia CEO Jensen Huang's affair with an alleged Chinese spy - but insisted he is a "very honourable man". 

Speaking at a White House press briefing, the US president said he had spoken with Mr Huang, adding: "I think he'll be in good shape."

Mr Trump told reporters: "I asked him [Mr Huang] about that and he said he had absolutely no idea that the person in question was a spy."

It comes after a New York Times report alleged Mr Huang had a close relationship with Alice Huang, a former executive from Singapore-based tech company Megaspeed, who allegedly passed information to China.

The newspaper reported that US intelligence determined that the woman was gathering information for Beijing.

Ms Huang is no relation to Jensen Huang.

On Sunday, Nvidia announced that it was conducting an independent investigation into claims Huang was the "target of a foreign intelligence effort".

Nvidia, which produces the dominant computer chips fuelling the AI boom and is one of the world's most valuable publicly traded companies, added that it had "no reason to believe that either national security or Nvidia secrets were compromised".

Mr Huang admitted to having an extramarital affair with a business executive, issuing an apology to his wife and to the company in an open letter posted on Nvidia's website. He did not name the woman.

The 63-year-old acknowledged that news reports surrounding the relationship and potential national security concerns led Nvidia's board to investigate.

"I support the investigation and will cooperate fully. I love our country and our company. I am committed to protecting Nvidia and supporting America's national security," Mr Huang said in his letter.

On Monday, China denied that it engaged in an attempt to ensnare Mr Huang, saying the spying allegations were "unsubstantiated" and a "smear" campaign against Beijing.

Mr Trump, who is set to meet with China's President Xi Jinping at the Asia-Pacific Economic Cooperation summit next week, did not confirm whether he would bring up the situation with his Chinese counterpart.

"No, I don't think so," Mr Trump said. "I mean, maybe. I'm sure President XI will ask me about it. I just know Jensen very well. I just think he's a very honourable man.

"I just know he's a fine person, but you never know what is going on. I hope everything's fine - he's done such an incredible job," Mr Trump added.

The controversy has raised questions over whether Mr Huang - referred to by some as "the godfather of AI" - will continue to lead Nvidia.

Most analysts do not expect the CEO to step down - especially considering the executive is the most important person underpinning the AI trade.

Bernstein analyst Stacy Rasgon said: "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."

Nonetheless, some shareholders have filed a proposed class action lawsuit against Nvidia - accusing the company of defrauding investors by concealing Mr Huang's ties to the suspected Chinese spy.

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Nvidia shares plummet

Shares in Nvidia plummeted on Monday - ending the trading session down 4.27%.

That wiped almost $200bn (£148bn) from the company's value in a single day - with Mr Huang's stake in the company now worth billions of dollars less.

In extended trading early on Tuesday morning, the stock had recovered by about 1%.

Elsewhere on Wall Street, the S&P 500 posted its biggest daily percentage gain since 8 April, while the tech-heavy Nasdaq accelerated by its fastest pace since the end of March.

The Dow Jones Industrial Average rose 2.15% on Monday - with the S&P 500 advancing 2.35% and the Nasdaq by 2.74%.

Restrictions in both the US and China mean Nvidia is effectively blocked from selling its advanced H200 chips to Chinese firms, potentially costing it billions in lost sales.

In recent years, Mr Huang has lobbied Washington to loosen limits on sales of Nvidia chips to China, winning Mr Trump's approval for selling its H200 chips this year.

Nvidia, originally a maker of graphics hardware for gamers, is currently the world's biggest chipmaker and powers the likes of ChatGPT and Google's Gemini, as well as the UK's most powerful supercomputer.

China has long sought to become a global leader in AI, with President Xi having set a 2030 deadline to surpass the capabilities of American AI systems.

Chinese media have largely focused on Mr Huang admitting to the affair, with some outlets saying the New York Times report was aimed at destabilising US-China relations.

"Whenever China-US relations begin to improve, there are often those firing shots from the shadows," the state-owned Global Times said.

(c) Sky News 2026: FBI to investigate Nvidia CEO over affair with alleged Chinese spy, Trump says