The FBI is investigating Nvidia boss Jensen Huang’s affair with a suspected Chinese spy, Donald Trump has confirmed, as shares in the AI chip giant tumbled more than four per cent despite a wider Wall Street rally.
Nvidia shares closed 4.3 per cent lower on Monday, having plunged almost nine per cent earlier in the session, as investors weighed the potential fallout from the investigation into its chief executive.
The decline came as US tech stocks rebounded from last week’s bruising sell-off, with the S&P 500 jumping 2.35 per cent and the Nasdaq 100 climbing 3.4 per cent.
Speaking at the White House on Monday, Trump confirmed that federal investigators were examining the allegations, although he defended Huang after speaking directly to the Nvidia founder.
“I know the FBI is looking into it,” Trump told reporters, adding that he believed Huang would be “in good shape”.
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SUBSCRIBE HEREThe president said Huang had denied knowing that the woman was allegedly working for Chinese intelligence.
Nvidia faces mounting scrutiny
The investigation follows reports that Huang had a relationship with Alice Huang, a former executive at Singapore-based data centre company Megaspeed, whom US intelligence officials reportedly identified as a Chinese intelligence asset.
Huang admitted on Sunday that he had been unfaithful to his wife, apologising to employees and his family.
“My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry”, he said.
Nvidia’s board subsequently launched an independent investigation into whether its chief executive had been targeted by a foreign intelligence operation.
The company maintained that there was “no reason to believe” national security or confidential information had been compromised and reiterated its confidence in Huang.
The controversy has also reached Capitol Hill, where lawmakers are demanding greater scrutiny of Nvidia’s security arrangements.
Democratic House leader Hakeem Jeffries said there were “real concerns that need to be addressed”, while the House Select Committee on China has requested a closed-door briefing with Huang.
The investigation has intensified questions about Nvidia’s dependence on its founder, who has led the company since 1993.