President Donald Trump stated on Monday during a press conference that the FBI is examining Nvidia chief executive Jensen Huang over his connection to Alice Huang, following reports from The Next Web that US spy agencies believe the former Megaspeed executive operated for China.
Key takeaways
- Donald Trump mentioned during a press conference on Monday that the FBI is looking into the situation.
- The New York Times reported that Trump had previously received a briefing about the relationship and chose not to act.
- Nvidia shares closed down more than 4% on Monday following the news.
- Jensen Huang faces a closed-door briefing with three House committees scheduled for November 18.
What is the Jensen Huang FBI investigation about?
Trump spoke to reporters on Monday regarding the inquiry, stating, “I know the FBI is looking into it in terms of something else. And I think that he’ll be in good shape.” He did not specify what he meant by that phrase. When asked about when he first learned of the relationship, Trump replied that he had heard and read about it for some time without giving a specific date. He also praised Huang as someone he has known for a long time and expressed amazement upon hearing the news, noting that Huang told him he had no idea the woman was a spy.
China's foreign ministry dismissed the spy claims as groundless. Meanwhile, Huang admitted in a staff memo on Sunday that he had been unfaithful to his wife, prompting the Nvidia board to launch an independent investigation to determine if company secrets or national security were threatened.
What are the financial and political fallout details?
The market reaction on Monday saw Nvidia shares close down more than 4%. Shareholders responded by filing a proposed class action accusing Nvidia and its chief executive of concealing ties to the alleged spy. This follows an event in October when Trump awarded Huang the country's highest science honor and disclosed stock trades involving Nvidia shares over the summer.
Why this matters
The situation creates major hurdles for the chipmaker as leadership faces intense scrutiny. Huang has been asked to attend a closed-door briefing with three House committees on November 18, which falls the day after Nvidia reports its quarterly financial results. Meanwhile, Trump noted he read Huang's statement and believes he is suffering greatly because of his family.
Frequently asked questions
President Donald Trump confirmed on Monday during a press conference that the FBI is looking into the situation.
US spy agencies reportedly believe that the former Megaspeed executive was working for China.
Nvidia's board opened an independent investigation to check whether company secrets or national security were put at risk.
Jensen Huang has been asked to attend a closed-door briefing with three House committees on November 18.
Nvidia shares closed down more than 4% on Monday, and shareholders filed a proposed class action.
Based on reporting by The Next Web. Read the original article
