Nvidia Case Live Updates: Trump defends CEO Jensen Huang, says ‘he had no idea she was a Chinese spy’

US President Donald Trump stated on Monday that the FBI is investigating Nvidia CEO Jensen Huang for allegedly having an affair with a Chinese businesswoman who is suspected of being a spy for Beijing. Trump expressed surprise at the allegations, which came from among his closest allies in Silicon Valley. He had a conversation with Huang, who claimed he was unaware that the woman was a spy.

The FBI's probe, announced on Sunday, has raised concerns about Huang's future as Nvidia is the world's most valuable chipmaker and Huang's influence is significant due to the AI boom. Huang disclosed to Nvidia employees that he had been unfaithful to his wife without revealing details about the relationship. Huang is Nvidia's fifth-largest shareholder, controlling the company through a flat structure where many executives report directly to him.

Trump reported that he was briefed on Huang's relationship and that the woman was allegedly giving information to the Chinese government, but chose not to act on the information. The Chinese Foreign Ministry spokesperson dismissed the allegations as baseless accusations and slander. Critics argue that the so-called Chinese spy narrative is simply a groundless accusation, while analysts believe that the investigation is unlikely to result in Huang's resignation.

However, several shareholders have filed a lawsuit against Huang and Nvidia, alleging that they defrauded investors by concealing Huang's ties with a suspected Chinese spy. Lawmakers and advocates are pushing for Congress to pass legislation to tighten China's access to AI chips following the news of Huang's relationship with a suspected Chinese intelligence agent.