Nvidia Leadership: FBI Opens Probe Into CEO's Ties to Chinese Espionage

The semiconductor industry faces a new layer of national security scrutiny as federal agents examine the personal life of its largest company leader. President Donald Trump announced on Monday that the Federal Bureau of Investigation is investigating the circumstances surrounding Nvidia CEO Jensen Huang.

The probe follows a Sunday announcement by Nvidia's board, which stated it was launching an independent review. The review was triggered by reports that Huang had been targeted by a foreign intelligence effort. The company disclosed that Huang maintained an extramarital relationship with Alice Huang, a woman with whom he shares no family ties.

According to Trump, he called Huang on Monday morning to check on the CEO's well-being. Trump said Huang assured him he had no knowledge that the woman in question was a spy. "I really believe him," the president told reporters during an impromptu press conference at the White House. He added that he considers Huang a man of high quality and an incredible individual.

Nvidia shares fell 4.2 percent in Monday's trading session, marking the steepest decline among companies in the Dow Jones and Nasdaq indexes. The drop occurred despite a generally positive trend in the broader market. Nvidia had previously indicated that Huang would remain in his role as chief executive despite the revelations.

Members of Congress are now demanding formal oversight. Representative Hakeem Jeffries, a Democrat from New York, called for a full briefing on the issues surrounding Nvidia. Jeffries is expected to serve as the next House Speaker in January. Senators Elizabeth Warren and Jim Banks issued a joint statement saying Congress must take decisive action to supervise companies linked to artificial intelligence.

Warren and Banks wrote that the disclosures regarding Nvidia and Huang make national security concerns more urgent. They noted that the situation raises important questions that the company must answer. U.S. intelligence agencies determined that Alice Huang, the woman in the alleged relationship, was a Chinese spy. Nvidia spokespeople did not immediately respond to requests for comment on Monday.