Trump says FBI investigating Nvidia CEO Huang over Chinese scandal

 U.S. President Donald Trump said on Monday that the FBI was investigating Nvidia CEO Jensen Huang’s affair with a Chinese businesswoman who was allegedly a spy for Beijing. 

Speaking to reporters during a press briefing at the White House, Trump said “I know the FBI is looking into (Huang) and I think that he’ll be in good shape.” 

“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,” Trump said. 

Trump’s comments come amid a rapidly escalating controversy over Huang’s affair with Alice Huang, an unrelated former executive of a Singapore-based client of Nvidia, who U.S. authorities reportedly concluded was a Chinese intelligence asset.

Huang admitted to the affair in a memo released earlier this week, and said that he will cooperate with any investigation into the matter. 

Nvidia shares slid over 4% on Monday after its board said it was initiating an investigation into the matter, although they found no reason to believe U.S. national security or Nvidia’s confidential information was compromised. 

Separately, the scandal was seen attracting Congressional scrutiny. Democrat Senator Chris Coons called for an investigation into Huang and Nvidia to "determine whether our national security was compromised." 

"We need answers about the relationship between AI billionaires and the Trump administration, who’s making these decisions, and who’s really got their hand on the wheel," Coons said in a social media statement. 

Trump was seen forming a close relationship with Huang over the past two years, having repeatedly lauded the Nvidia CEO for his contributions to the American economy, while also taking him along for several high-profile state visits-- most notably Trump’s Beijing trip earlier this year. 

Huang sits at the heart of one of America’s most valuable companies, largely due to its status as the maker of the most advanced artificial intelligence chips available in the market.

China has been a long-standing point of contention for Nvidia, after the U.S. effectively blocked most of its advanced chip sales to the country since 2022. Huang has repeatedly called for allowing more chip sales to China, albeit to mixed results from Washington. 

A key point of concern in the ongoing scandal is the governance implications, given that Huang is a key figure in Nvidia with few potential successors. 

But analysts said it appeared unlikely, for now, that the scandal would result in Huang stepping down. The Nvidia CEO has led the company since co-founding it in 1993.