Trump Says Jensen Huang Denied Knowing His Paramour Was a Chinese Spy

According to Nvidia CEO Jensen Huang on Monday, President Donald Trump stated they had a conversation in which Huang maintained he was completely unaware that a woman he acknowledged having an extramarital affair with operated as a Chinese spy.

Trump told reporters at the White House that he was amazed by the allegations against Huang. The claims prompted Nvidia’s board to launch an independent investigation.

Trump said he called Huang simply to see how he was doing. When asked if Huang had any idea about the woman’s background, Trump said Huang told him he had no idea she was a spy.

The New York Times reported on Oct. 29 that U.S. spy agencies had eyed Megaspeed International executive Alice Huang for possibly steering advanced Nvidia artificial intelligence chips to China. American officials concluded she was a Chinese intelligence asset funneling information to Beijing.

The newspaper also reported that Trump was briefed about the intelligence findings about a year ago and chose not to do anything with the information. Trump has been reluctant to disrupt Nvidia chip sales that boost the U.S. stock market.

The Justice Department is conducting a criminal investigation into Megaspeed, a Singaporean company suspected of smuggling Nvidia artificial intelligence chips into China, according to a source familiar with the matter. The investigation focuses on whether China recruited Alice Huang to spy and assist in smuggling the chips to violate strict U.S. export controls.

The investigation is led by the Justice Department’s National Security Division, the FBI, and the Commerce Department’s Bureau of Industry and Security. Trump said Monday that the FBI is looking into the matter in terms of something else.

In a related development, a class-action lawsuit on behalf of shareholders was initiated against both Nvidia and Huang by a legal practice based in Los Angeles within a federal court located in San Jose, California. The Rosen Law Firm suit alleges the defendants made false or misleading statements regarding the affair and Nvidia’s relationship with Megaspeed.

Shares of Nvidia closed down 4.2% in Monday trading, making the company the worst performer in the Dow and the Nasdaq.

House Minority Leader Hakeem Jeffries called Monday for a full briefing on the issues engulfing Nvidia. Senators Elizabeth Warren and Jim Banks also issued a joint statement arguing that Congress should take decisive action regarding oversight of artificial intelligence companies.

Chinese Foreign Affairs Ministry spokesperson Guo Jiakun dismissed the allegations on Monday. He said the so-called Chinese spy allegation is unsubstantiated and amounts to smears against China.

Trump stated that Huang is suffering greatly, particularly because of his family and his wife. When asked if he would bring up the issue with Chinese President Xi Jinping at the upcoming Asia-Pacific Economic Cooperation summit in Shenzhen, China, Trump said he does not think so.

Nvidia said that Huang will remain CEO despite the revelations.

More on this story: Nvidia CEO Jensen Huang Admits Affair With Suspected Chinese Agent