'I really believe him': Trump backs Nvidia CEO Jensen Huang amid China spy scandal, $7.5 billion chip shipment claims and lawsuit

US President Donald Trump has publicly defended Nvidia CEO Jensen Huang as the technology executive faces mounting scrutiny over his reported association with a woman suspected of having links to Chinese intelligence. The controversy has drawn attention from lawmakers in both political parties, triggered an independent investigation by Nvidia's board and led to legal action from shareholders.

At the centre of the dispute are allegations concerning Alice Huang, a former executive at Singapore-based data centre company Megaspeed, whom US intelligence agencies reportedly suspect of having connections to China's intelligence network.

The matter has also raised questions about whether advanced Nvidia processors worth billions of dollars were transferred to Chinese companies through intermediaries, potentially bypassing American export restrictions.


While Trump has expressed confidence in the Nvidia chief, Democrats are demanding greater oversight of semiconductor exports to China.

Republican lawmakers, meanwhile, want direct answers from Huang about the potential national security implications.

Trump defends Jensen Huang, says he believes Nvidia chief

Trump said he had personally spoken with Huang about his reported relationship with Alice Huang and believed the executive's explanation that he was unaware of her alleged intelligence connections.

"He said, 'I had no idea that she was a spy', and I really believe him," Trump told reporters, according to Fox News.

The US President described Huang as a "very high-quality person" and praised his contribution to America's technology sector.

He also noted Nvidia's advanced Blackwell processors, arguing that their technological complexity made them extremely difficult for competitors to replicate.

Trump acknowledged that the Federal Bureau of Investigation (FBI) was examining the matter but suggested he did not expect the investigation to seriously damage Huang's position.

"I know the FBI is looking into it in terms of something else, and I think that he'll be in good shape," he said.

The President was also questioned about a classified memorandum reportedly prepared under Secretary of State Marco Rubio.

According to The New York Times, the document warned senior administration officials about Alice Huang's alleged links to China's Ministry of State Security.

When asked whether he had seen the memorandum, Trump said it might have been brought to his attention but had not made a significant impression on him. He added that he would check with intelligence officials.

Democrats demand answers as $7.5 billion Nvidia chip shipment allegations emerge

Trump's defence of Huang has not eased concerns among lawmakers about the administration's approach to technology exports to China.

Democratic members of the House Foreign Affairs Committee, including Gabe Amo, Gregory Meeks and Sydney Kamlager-Dove, have reportedly written to Commerce Secretary Howard Lutnick seeking explanations about the government's semiconductor export policies, according to The New York Times.

The lawmakers questioned how Washington could maintain its ambition to lead the global artificial intelligence industry while allowing advanced American technology to reach a strategic competitor.

"You cannot claim to be protecting American leadership in artificial intelligence while allowing our most advanced technology to reach a strategic competitor," they wrote.

They further argued that national security considerations should take precedence over commercial interests, raising concerns about the possibility of sophisticated American processors reaching Chinese businesses connected to military and AI development programmes.

Republican lawmakers have also sought greater clarity.

According to Axios, three Republican House committee chairs requested a private meeting with Huang to discuss his reported association with Alice Huang and whether restricted Nvidia processors were being diverted to China through intermediary companies in other countries.

The political pressure has intensified following allegations about a network that may have facilitated substantial Nvidia chip shipments into China.

A Reuters report citing The Information said Alice Huang and people associated with her allegedly helped arrange shipments involving at least $7.5 billion worth of Nvidia processors to Chinese companies.

The report alleged that approximately 240,000 advanced processors, including Nvidia's H100, H200 and some A100 models, were moved into China through a network of businesses operating across China and Singapore.

Reuters said it had not independently verified the allegations. Nvidia also did not immediately respond to its request for comment.

The allegations have renewed attention on Huang's efforts to retain access to the Chinese market despite Washington's restrictions on advanced semiconductor exports.

In an October interview with Fortune, the Nvidia chief described China as a significant commercial opportunity. "I think the opportunity in China is large and growing, just like the AI market across the world is large and growing," Huang said.

Nvidia launches independent probe as shareholders sue Huang

As questions surrounding the allegations continue, Nvidia's board has initiated an independent investigation to determine whether its chief executive was targeted as part of a foreign intelligence operation.

The company confirmed that a committee comprising independent directors would supervise the inquiry with assistance from external legal advisers.

"A committee of independent directors, assisted by outside independent counsel, will oversee the investigation," Nvidia said in an official statement.

The company also sought to reassure investors that it had not identified evidence of a security breach.

"While the Board has no reason to believe that either national security or NVIDIA secrets were compromised, the Board's inquiry will examine all available information," the statement added.

Nvidia expressed confidence in Huang's leadership and said he would cooperate with the investigation.

Separately, Huang acknowledged being unfaithful to his wife and apologised to his family, employees and shareholders. In an internal communication reported by Fox News, he accepted responsibility for his actions.

"I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did," he said.

The controversy has also moved into the legal arena.

According to Reuters, Nvidia shareholders have filed a proposed class-action lawsuit against the company and Huang in federal court in San Jose, California.

The lawsuit alleges that Nvidia and its chief executive failed to disclose information concerning the reported relationship and potential national security risks, leaving investors without material information that could have influenced their decisions. The plaintiffs are seeking unspecified damages.

Investors have also reacted to the developments.

Nvidia shares finished Monday's trading session 4.27% lower at $178.67, erasing approximately $190 billion from the company's market capitalisation. The stock subsequently opened 2.09% higher at $182.40 in Tuesday's pre-market trading, recovering some of its previous losses.

China, meanwhile, has rejected allegations that its intelligence agencies attempted to target Huang. Chinese Foreign Ministry spokesperson Guo Jiakun dismissed the reports as "groundless speculation, and a smear against China."

The developments have also attracted attention from semiconductor suppliers across Asia.

According to Focus Taiwan, industry executives expect worldwide demand for AI technology to remain strong, although the possibility of tighter American export controls could create additional compliance challenges for chipmakers and their suppliers.

With Trump publicly standing behind Huang and lawmakers from both parties seeking further explanations, the Nvidia chief is facing pressure on several fronts.

The independent board investigation, shareholder litigation and questions surrounding the company's China business could prove consequential for the world's leading AI chipmaker.