President Donald Trump said Monday that the FBI is investigating Nvidia CEO Jensen Huang’s affair with an alleged Chinese government agent, but said he doesn’t think the executive who has helped to develop artificial intelligence has a reason to worry.
“I know the FBI is looking into it in terms of something else, and I think that he’ll be in good shape,” Trump said at a White House briefing.
The sudden emergence of Huang's infidelity has rocked the political class and America's tech sector, creating new concerns about whether China has been able to access the cutting-edge chips designed by Nvidia that are powering the development of artificial intelligence.
Trump suggested the extraordinary step of directly involving himself in a counterintelligence investigation, a sign of his friendly relationship with Huang and the possible geopolitical stakes.
“I did speak to him today just to see if he’s feeling all right, how you’re doing," Trump said. "He said he had absolutely no idea that the person in question was a spy.”
Huang — a singular figure in the technology landscape and one of the world’s wealthiest people — has acknowledged he had an affair, issuing an apology to his wife and to the company in an open letter posted on Nvidia’s website. The New York Times reported that US intelligence determined that the woman was gathering information for Beijing.
“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,” Huang said in his letter.
Nvidia announced Sunday it was conducting an independent investigation into reports that Huang was the “target of a foreign intelligence effort.”
The episode also is attracting congressional scrutiny, with top Democrats Sen. Mark Warner and Rep. Hakeem Jeffries saying Monday they are interested in investigating it further. Jeffries said the Nvidia issue came up during a closed-door session with the CIA director and the Director of National Intelligence that was primarily about Iran.
“We’re going to need a full briefing, specifically as it relates to the Nvidia issue, so we can all get to the bottom of what has happened,” he said, “and what the implications are in terms of America’s national security.”
China has denied a plot to ensnare Nvidia's chief
Trump is slated to meet next week with Chinese leader Xi Jinping in Shenzhen, China, at the Asia-Pacific Economic Cooperation summit, but he was noncommittal about bringing up the situation with Xi.
“No, I don’t think so,” 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 honorable man.”
FBI counterintelligence investigations often examine efforts by foreign powers to spy on the United States, whether by surreptitiously stealing technology designed by American companies, covertly waging foreign influence campaigns aimed at shaping public opinion or cultivating relationships with powerful political and industry figures. Such investigations can take years and do not necessarily culminate in criminal charges. China has been regarded across presidential administrations of both political parties as a persistent counterintelligence threat.
China denied Monday that it engaged in an attempt to ensnare Huang. “The so-called Chinese spy allegation is unsubstantiated. It is nothing but smears against China,” Ministry of Foreign Affairs spokesperson Guo Jiakun said.
Beijing earlier had dismissed The New York Times report saying Huang had developed a close relationship with a Chinese citizen named Alice Huang, who ran a company that last year faced claims it was illicitly shipping advanced Nvidia computer chips into China.
Huang has had Trump's ear on AI regulation
Huang and Nvidia play a critical role in the artificial intelligence industry as many of the world’s leading AI developers rely on the company’s specialized chips to power their systems. Huang has also helped persuade Trump to take a lighter touch on regulating AI, arguing that existing laws could cover any security issues stemming from the technology and that individual companies should behave responsibly with the products they develop and release.
Huang also has lobbied Washington to loosen limits on sales of Nvidia chips to China in recent years, winning Trump’s approval for selling its H200 chips this year. It’s unclear if Beijing would allow Chinese companies to buy those chips in large quantities. Nvidia said in a regulatory filing in August that it has sold only a small amount to China as such sales are restricted by the Chinese government.
The H200 chips are not Nvidia’s most cutting-edge models, but they are still advanced. Previously, Huang also lobbied Trump to be allowed to sell Nvidia’s less-advanced H20 chips, which were designed to comply with US export restrictions on China.
In an exclusive interview with The Associated Press in June, Huang said: “National security should always be the top concern of all technologies. But having said that, you know, you have to be very specific about the risk that you’re concerned about, before setting up policies for export controls.”
Nvidia shares dropped more than 4% in trading Monday. Nvidia stock has shed roughly 11% of its value since last Wednesday.
Attention turns to a data center company in Singapore
The New York Times said Alice Huang was a former executive of a Singapore-based data center company called Megaspeed International, whose website prominently touts its partnership with Nvidia.
Many offices in Singapore were closed Monday for a holiday. Megaspeed and the Singapore Ministry of Home Affairs did not immediately reply to requests for comment.
Nvidia is one of the world’s most valuable publicly traded companies, alongside Apple and Microsoft. Its sales of computer chips to China have at times been targeted by US regulators seeking to limit Beijing's access to such technology.
“The key questions are whether he was aware of any espionage activities and whether any confidential or strategically sensitive information was compromised,” said George Chen, a partner and chair of digital practice at The Asia Group, a Washington-based consultancy.
“Those questions require evidence rather than speculation,” he added in a text message to reporters.
Chinese media have largely focused on Huang admitting to the affair and state media outlets have mainly echoed the official government line. Some have said the New York Times report was aimed at destabilizing 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.
