President Donald Trump has said that the FBI was looking into Nvidia CEO Jensen Huang a day after the tech executive admitted to an extramarital affair with a woman accused of being a Chinese spy.
“We’ll look into it,” Trump told reporters on Nov. 9. “I know the FBI is looking into it in terms of something else, and I think that he’ll be in good shape.”
His statement comes after Nvidia announced that it has opened an independent investigation after reports that Huang was the target of a foreign intelligence campaign involving business executive Alice Huang, whom U.S. authorities suspect had ties to Chinese intelligence.
Trump said he spoke with Huang on Nov. 9 and asked him about the situation.
“He said he had absolutely no idea that the person in question was a spy,” Trump said. “I asked him that question. ‘Did you have any idea that she was a spy?’ He said, ‘I had no idea that she was a spy,’ and I really believe him.
“I hope there’s no problem. If there is a problem, we’ll let you know about it. But I hope there’s no problem.”
Shares of Nvidia tumbled at the start of the trading week as Wall Street waits for the outcome of the investigation and its potential implications for Nvidia’s leadership.
Alice Huang and Megaspeed
Alice Huang, also known as Huang Le, was an executive at Singapore-based data center company Megaspeed.
The New York Times first reported on the Nvidia CEO’s relationship with Alice Huang and U.S. intelligence agencies’ concerns that she passed information to Beijing.
President Donald Trump had been briefed on the intelligence last year.
Megaspeed has purchased Nvidia chips, and U.S. authorities have investigated allegations that the company helped China gain access to advanced AI processors subject to U.S. export restrictions.
The probe comes amid a broader “Singapore washing” trend, in which some Chinese companies establish or domicile businesses in Singapore to reduce exposure to U.S.–China tensions and preserve access to global markets and technology.
The practice has spread across multiple industries, including technology, biotechnology, and critical minerals.
It is unclear what information Alice Huang may have shared with China.
“The central questions are whether intellectual property or sensitive information was compromised, whether customer relationships or export approvals are affected, and whether there is a material change in leadership,” Ken Mahoney, president and CEO of Mahoney Asset Management, told The Epoch Times in an email.
Allegedly Targeted by Chinese Spy Effort
Nvidia’s board stated that it will form a committee of independent directors, with help from external independent counsel, to oversee an investigation.
Although Huang may have been the “target of a foreign intelligence effort,” the board stated that it has no reason to think that national security or Nvidia secrets were compromised.
Huang supports the review and has committed to cooperating with the probe, the company stated.
“The board has confidence in Jensen and his leadership team and will provide further updates as appropriate,” Nvidia said.
Export Controls
The AI arms race has been a key component of U.S.–China tensions.
The White House implemented strict export controls on the company’s most advanced AI chips to Beijing, forcing Nvidia to produce China-specific chips to comply with U.S. regulations.
Chinese AI companies have increasingly turned to domestic alternatives, including chips developed by Huawei and other local firms.
Huang has been highly critical of U.S. export controls, calling them a “failure.”
“Four years ago, Nvidia had 95 percent market share in China. Today, it is only 50 percent,” Huang said at a news conference at last year’s Computex technology show in Taipei, Taiwan.
“The rest is Chinese technology. They have a lot of local technology they would use if they didn’t have Nvidia.”
Chinese AI firms have adapted by using locally developed chips, with export restrictions and state support bolstering domestic competitors.
Lawmakers’ Response
Lawmakers have requested a closed-door briefing regarding Nvidia’s security protocols and Huang’s interactions with the former Megaspeed executive.
In a Nov. 4 letter, three committees, including the House Select Committee on the Chinese Communist Party, asked Huang to appear in Washington.
“We are writing to request that you appear before our committees for a joint, closed-door briefing on Nvidia’s security protocols against foreign adversary espionage and your interactions with a publicly reported People’s Republic of China (PRC) intelligence asset,” the letter reads.
Sen. Mark Kelly (D-Ariz.) told The Epoch Times on Nov. 9 that he had not been briefed on the situation yet but that he thought Huang should come before the Senate Intelligence Committee, and he said he planned to speak with his colleagues on the committee about that.
“We need to get to the bottom of what was exchanged with this Chinese intelligence agent,” Kelly said.
Sen. Christopher Coons (D-Del.) told The Epoch Times that to see the CEO of “one of the most important, cutting-edge AI companies clearly in a relationship” with an alleged Chinese agent raises significant national security risks.
He questioned how much that might have influenced the Nvidia CEO’s effort to export cutting-edge chips to China and if any critical U.S. policy toward China might have been compromised.
The senators said they believe that more than one senate committee will want to look into the issue.
“Congress has a real oversight role, and we should look very hard,” Sen. John Curtis (R-Utah) told The Epoch Times.
How Wall Street Reacted
Nvidia shares slipped in after-hours trading on Nov. 8 after Huang admitted to the infidelity and the board announced an independent investigation.
The stock fell by 4.27 percent to $178.67 at the end of the Nov. 9 trading session.
Despite the scandal surrounding Huang, many analysts do not anticipate that it will sink the stock long-term. However, the main threat is whether the company will force Jensen Huang out after 33 years.
“You would not want to see Jensen removed as CEO; we think that the stock would be in even tougher shape than it is now if that were to happen,” Mahoney said.
“His technical vision, execution, industry relationships, and ability to articulate the AI opportunity have been major competitive advantages.”
At the same time, Mahoney said, Nvidia also benefits from engineering talent, a well-established software ecosystem, and strong customer demand.
Chinese Honeypot Operations
Over the years, U.S. adversaries, including China, have been accused of employing so-called honeypot tactics as part of intelligence and influence operations.
The strategy involves using romantic or personal relationships to gather information, gain access to influential networks, or exert leverage over targets in government, business, and academia.
One of the most widely cited alleged Chinese influence operations involved Christine Fang—also known as Fang Fang—who developed relationships with several U.S. politicians, including then-future Congressman Eric Swalwell (D-Calif.), before attracting FBI scrutiny.
Swalwell never publicly admitted to the relationship. He resigned in April after sexual allegations involving a former staffer surfaced.
Travis Gillmore, Jacki Thrapp, Nathan Worcester, and Reuters contributed to this report.
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