“Certainly, it didn’t make much of an impact on me,” Donald Trump said on Monday regarding an intelligence warning about Nvidia Corp.
Secretary of State Marco Rubio oversaw the drafting of a memo detailing Nvidia CEO Jensen Huang’s relationship with Alice Huang, whom U.S. intelligence officials believe is a Chinese intelligence agent, Axios reported. The document drew on surveillance of Alice Huang and a chip-smuggling investigation into her company, Megaspeed. It circulated before President Trump’s May 13–15 trip to China.
“. Employees inside the company described the mood at the chipmaking giant as ‘sad.’”@seemacnbc @CNBC $NVDAhttps://t.co/hFIKSeXi51 pic.twitter.com/BDS1bpGRuL
Rubio also warned Trump directly aboard Air Force One before a refueling stop in Anchorage. Jensen Huang joined the delegation for that stop after not initially being invited to participate, according to The New York Times.
Commerce Department Clears Chinese Companies to Purchase Nvidia H200 Chips
The Commerce Department cleared around 10 Chinese companies to purchase Nvidia’s H200 chips, Reuters reported on May 14. Some export approvals predated the intelligence warning.
President Trump is defending $NVDA CEO Jensen Huang after speaking with him about the espionage allegations. “I spoke to Jensen today. He told me he had no idea that woman was a spy and I really believe him.” pic.twitter.com/HlOw0XWvO0
Nvidia disclosed in February that it had received an H200 export license, according to a Securities and Exchange Commission filing. Huang told Axios in March that the company held licenses covering Chinese customers.
It remains unclear how those approvals ultimately translated into sales. China’s government has halted some chip-buying activity in spite of U.S. approvals. Megaspeed purchased billions of dollars’ worth of Nvidia chips.
$NVDA just announced an independent board investigation into reports that CEO Jensen Huang was targeted by a foreign intelligence effort. The board emphasized it has “no reason to believe that either national security or Nvidia secrets were compromised” while reaffirming its… pic.twitter.com/jc7UfUF1iT
Headquarters Return Amid Internal Probe
According to individuals familiar with the matter who spoke with CNBC, Jensen Huang arrived at Nvidia’s Santa Clara headquarters on Monday to lead his usual morning meeting with senior leadership. On Sunday, Huang had disclosed an extramarital affair to employees in an email.
“I know an apology cannot undo what I have done,” he wrote. “I hope our family will heal and that, over time, I can earn back your trust.”
Yes, this is a sensational story, but put the tabloids aside for a second. Donald Trump is selling America’s security to our foreign adversaries. In the spring, Marco Rubio warned senior Trump officials that Jensen Huang, CEO of Nvidia, was involved with a woman U. S.…
As reported by sources who requested anonymity because they lacked authorization to speak publicly, Huang opened the private session by discussing his infidelity and offering apologies to his colleagues. He did not take any questions and quickly pivoted to business. He was also in the office on Tuesday conducting meetings.
The board announced an independent investigation and hired the law firm Wachtell, Lipton, Rosen & Katz to conduct the probe on Tuesday, TechCrunch reported. The board expressed confidence in Huang’s leadership and stated it had no reason to believe national security secrets were compromised. It is unclear when Huang learned Alice Huang was a suspected spy.
Nvidia Loses Market Value Amid Congressional Investigations and Demands
Nvidia has lost about $1 trillion in market value since the initial reporting of the relationship, though some of that decline followed an overwhelming number of Democrats promising to slow an AI data-center buildout in the midterms.
Lawmakers in both parties have promised investigations and demanded more information. Top Democrats on the House Foreign Affairs Committee demanded answers from Commerce Howard Lutnick about chip approvals, citing alarming reports of potential Chinese intelligence ties. House committee chairmen also requested Jensen Huang brief Congress in closed-door testimony next week.
Corporate Governance Questions
Corporate governance experts note that Nvidia operates with a famously flat structure, with more than 60 direct reports to Huang. The company does not appear to have a succession plan, which University of Colorado law professor Ann Lipton called a danger for any company, according to TechCrunch.
Huang owns about 3.6% of the company and does not control the vote. That makes him easier to dislodge than if he held dual-class shares, Lipton told TechCrunch.
Frequently Asked Questions About the Nvidia Investigation
What law firm did Nvidia hire for its internal probe?
Nvidia’s board hired Wachtell, Lipton, Rosen & Katz to conduct the independent investigation into the CEO’s relationship.
When did Nvidia disclose its H200 export license?
Nvidia disclosed in a February SEC filing that it had received an H200 export license for Chinese customers.
The Commerce Department transferred its Megaspeed chip-smuggling investigation to the Justice Department in 2025 after contact from Nvidia’s ($NVDA) general counsel raised concerns about compromising the case, The New York Times reports. * Investigation: U. S. officials suspected… pic.twitter.com/6x3U1uz7iF
What percentage of Nvidia does Jensen Huang own?
Jensen Huang owns about 3.6% of Nvidia, meaning he does not hold voting control over the company.
Who founded Nvidia and when?
Jensen Huang co-founded Nvidia in 1993.
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