President Donald Trump said at a White House briefing on 9 November that the FBI was looking into matters involving Nvidia chief executive Jensen Huang’s relationship with Alice Huang, a Megaspeed executive alleged to be a Chinese spy, NBC News reported. Trump said he had spoken to Jensen Huang earlier that day and believed Huang had not known the woman was a spy. The remarks bring federal law enforcement into public view alongside an inquiry Nvidia’s board announced on 8 November.
Key points
- Trump said the FBI was looking into the matter but described its interest as being “in terms of something else”.
- The Justice Department is investigating alleged chip shipments involving Singapore-based Megaspeed, according to a person familiar with the matter cited by NBC News.
- Nvidia’s board has begun an independent inquiry into reports that its chief executive was targeted by a foreign intelligence effort.
- China’s foreign ministry rejected the allegation that Alice Huang was a Chinese spy.
Trump’s account of the call with Huang
Trump told reporters that he had called Jensen Huang to check on him. Recounting their conversation, the president said Huang “had absolutely no idea that the person in question was a spy” and added, “I really believe him.” Those were Trump’s words about Huang’s response, rather than a statement from Huang to reporters. Trump also said: “I know the FBI is looking into it, in terms of something else, and I think that he’ll be in good shape.”
The distinction in Trump’s description matters to the scope of the allegation. He referred to FBI interest while qualifying what it concerned, rather than identifying an investigation of Huang himself. At the briefing, Trump called Huang “an amazing guy” and said, “I hope there’s no problem.” The BBC reported that Trump gave no further details of the FBI investigation or its start date. The FBI declined to comment when the BBC contacted it.
Alice Huang, who is not related to Jensen Huang, was a Megaspeed executive. US intelligence officials believe she was a Chinese spy, according to reporting about the alleged relationship. Chinese Foreign Affairs Ministry spokesperson Guo Jiakun rejected that account on 9 November, saying “the so-called Chinese spy allegation is unsubstantiated. It is nothing but smears against China.” Neither the allegation nor the ministry’s rejection settles what Huang knew when the two had a relationship.
Justice Department inquiry centres on Megaspeed
The Justice Department is conducting a criminal investigation into Singapore-based Megaspeed, according to a person familiar with the matter cited by NBC News. The inquiry concerns allegations that the company helped send Nvidia AI chips to customers in China in breach of US export controls. It is being led by the department’s National Security Division with the FBI and the Bureau of Industry and Security, the Commerce Department body responsible for export-control enforcement.
The investigation also encompasses people connected to Megaspeed, including Alice Huang, and whether China recruited her to gather intelligence and assist the alleged chip shipments. That account identifies the conduct investigators are examining. Megaspeed said in an earlier statement that it had acted “fully in compliance with all applicable laws, including US export control regulations”, The Guardian reported. The Justice Department declined to comment on the matter when NBC News contacted it.
The chip allegations sit alongside Nvidia’s account of its dealings with Megaspeed. In an interview published on 30 October, Jensen Huang said Nvidia had examined Megaspeed’s deployments of its GPUs and counted each one, according to The Guardian. He said he thought the US government had done so as well. Nvidia has said it has no reason to believe its secrets or national security were compromised, the BBC reported. These are the company’s and Huang’s assessments while the federal inquiry proceeds.
Nvidia board inquiry and shareholder lawsuit
Nvidia’s board announced on 8 November that it was opening an independent investigation following reports that Jensen Huang had been the target of a foreign intelligence effort. Huang told employees he had been “unfaithful” to his wife and apologised. AI Affairs previously reported on the board’s independent inquiry. Huang has said he will cooperate with it.
Shareholders also brought a proposed class action in California on 9 November. The complaint accuses Nvidia and Huang of misleading investors about his relationship with Alice Huang and its possible consequences for the company. AI Affairs has separately covered the shareholder suit over the alleged disclosures. Its allegations are claims by investors, separate from the Justice Department’s investigation into Megaspeed and the board’s inquiry.
Nvidia shares closed down 4.2% on 9 November, NBC News reported. The Guardian put the closing decline at 4.3%. The lawsuit was filed five minutes after the US stock market closed, according to The Guardian. The shareholders are seeking unspecified damages from Nvidia and Huang.
Congress has sought its own account of Nvidia’s safeguards and Huang’s dealings with Alice Huang. AI Affairs has reported that House Republicans requested a briefing from Huang for 18 November. The requested closed-door briefing concerns Nvidia’s protections against foreign espionage and Huang’s interactions with the Megaspeed executive.
