According to Trump, he asked Huang, ‘Did you have any idea she was a spy?’ Huang reportedly replied, ‘I had no idea she was a spy,’ and Trump said he believes him. The FBI has declined to comment on the investigation when contacted by the BBC.

China rejects espionage allegations

China has dismissed the claims as ‘entirely groundless, speculative and intended to smear and malign China,’ its foreign ministry said. US intelligence officials, however, believe Alice Huang, also known as Huang Le, was a spy for Beijing, according to a report by the New York Times.

Investigation and share price impact

Nvidia announced it has launched an independent investigation into the affair. The firm said it has no reason to believe its secrets or national security were compromised. The news led to a 4% drop in Nvidia’s share price on Monday, wiping about $250bn off the company’s market value.

Alice Huang was managing director of Singaporean company Megaspeed, which has had dealings with Nvidia. The firm is central to global AI development through its microchips and is a major player in the US-China AI rivalry. Washington treats Nvidia’s exports to China as a matter of national security.

White House and Congressional response

Trump said he believes Huang is an ‘honorable guy’ and will be ‘in good shape’ after the investigations. He also indicated that he thinks Chinese President Xi Jinping will ask him about the issue during their next meeting. The chairmen of several Congressional committees have requested a closed-door briefing from Huang on his interactions with Alice Huang and Nvidia’s security protocols against foreign espionage.

Jensen Huang admitted he was ‘unfaithful’ to his wife and apologised for hurting her and their children. He said he is ‘committed to protecting Nvidia and supporting America’s national security’ and will cooperate with the investigation. He has also been requested to appear for a joint closed-door briefing for several Congressional committees next week.

Nvidia was founded in 1993 and has become a leading firm in AI development. Its chips are vital to the global AI industry, and the White House has previously imposed restrictions on where its advanced products can be sold. The Trump administration recently allowed the sale of H200 chips to Chinese customers under certain conditions.

Other tech leaders, including Elon Musk, have expressed support for Huang to continue leading the company. While the sell-off in shares was significant, analysts suggest the hit to the company may be short-lived.