Trump says FBI probing Nvidia CEO Jensen Huang over China controversy

US President Donald Trump stated on Monday that the FBI is looking into Nvidia CEO Jensen Huang's relationship with a Chinese businesswoman suspected of being a spy for Beijing. Huang is among Trump's closest allies in Silicon Valley. Trump claimed he had spoken to Huang, who denied any knowledge of the woman's alleged espionage activities.

Nvidia's board launched an internal investigation on Sunday into whether Huang was targeted by a foreign intelligence effort. The probe has raised concerns about Huang's future as CEO of the world's most valuable chipmaker. Nvidia shares closed down over 4% on Monday following the investigation's announcement. Huang has a 3.6% stake in Nvidia and maintains a tight grip on the company through its flat organizational structure.

Huang recently disclosed to Nvidia employees that he had been unfaithful to his wife, but did not provide details about the relationship. The CEO enjoys rock-star status globally, particularly in Asia, where he often interacts with fans. Trump's comments on the investigation came as a surprise, given his close relationship with Huang. The two have shared a strong bond, with Trump praising Huang and awarding him the nation's highest honor for scientific achievement in October.

The New York Times reported that Trump was briefed on Huang's relationship with the woman and that she was providing information to the Chinese government. However, Trump chose not to act on the information. The Chinese Foreign Ministry has denied the allegations, calling them "groundless accusations, slander, and smear."

Huang's relationship with Trump has coincided with several favorable policy developments for Nvidia. The president has publicly praised Huang, and Trump disclosed buying up to $1.6 million and selling up to $1 million of Nvidia shares during the summer. Analysts believe that Huang's role as CEO is crucial to Nvidia's success, particularly in the AI sector.

Nvidia shareholders have filed a proposed class-action lawsuit against Huang and the company, accusing them of defrauding shareholders by concealing Huang's ties with a suspected Chinese spy. US lawmakers have also called for increased scrutiny of China's access to AI chips. The incident has raised concerns about the potential risks of foreign influence in the tech industry.

The investigation into Huang's relationship with the Chinese businesswoman has sparked a heated debate about the intersection of technology and geopolitics. As the world's most valuable chipmaker, Nvidia's actions and decisions have significant implications for the global tech industry. The outcome of the investigation will likely have far-reaching consequences for Huang, Nvidia, and the broader tech sector.

Key points

• US President Trump says FBI is investigating Nvidia CEO Jensen Huang over alleged ties to Chinese spy.
• Nvidia's internal investigation has raised concerns about Jensen Huang's future as CEO.
• The incident has sparked calls for increased scrutiny of China's access to AI chips.