Donald Trump said on Monday that he spoke by phone with Nvidia CEO Jensen Huang about his relationship with Chinese manager Alice Huang. The woman is suspected by the American services of spying for China.
The US president said that he asked the head of Nvidia directly if he knew that the woman could be a spy.
I asked him a question, "Did you know she was a spy?" "He replied, 'I had no idea she was a spy,' and I really believe him," Trump told reporters.
The president returned to this issue during a briefing at the White House. He emphasized that he had known Huang for a long time and had a good opinion of him.
I consider him a truly high-class man. I have known him for a long time (…). He's an amazing man. I just hope there won't be any problems, he said.
Trump described Nvidia's CEO as an "honorable man" and said he was confident he would be OK after the investigation.
I think he's really struggling with this. I read his statement and I think he is suffering a lot, especially for his family; his wife, whom he loves, and his loved ones, he said.
The president confirmed that the FBI was investigating the case. However, he did not disclose the details of the proceedings or when exactly they were initiated. The Federal Bureau of Investigation declined to comment.
According to the daily's findings, American intelligence services recognized Alice Huang, also known as Huang Le, as a person suspected of spying for China. The woman is not related to Jensen Huang. Alice Huang was the managing director of the Singaporean company Megaspeed, which cooperated with Nvidia, and she was said to have had a close, intimate relationship with Huang.
According to the New York Times, Chinese intelligence allegedly recruited her to obtain information and potentially influence the company. One of the possible goals was to make the most advanced integrated circuits produced by the American company available to the Chinese market, bypassing applicable export restrictions.
According to the newspaper's reports, US Secretary of State Marco Rubio sent a memo to key officials in Washington last spring, warning that Jensen Huang maintains close relations with a person suspected of collaborating with Chinese intelligence.
The case is of particular interest to American authorities due to the importance of Nvidia in the technological competition between the United States and China. The company plays a key role in the development of artificial intelligence technology. The integrated circuits designed by the company are an important element of the infrastructure used in this sector.
In Washington, exporting the most advanced chips to China is treated as a matter of national security. It is the importance of Nvidia's technology and the applicable trade restrictions that make reports regarding the private relations of its president arouse the interest of the American services.
On Sunday, Nvidia announced the initiation of an investigation into possible "foreign intelligence activities against Huang." The company commissioned an independent investigation into the scandal involving Alice Huang, suspected of espionage for China.
In a message to employees, 63-year-old Jensen Huang referred to the disclosed information and admitted to adultery.
At the same time, Nvidia said that there was no reason to believe that there had been a breach of trade secrets or a threat to national security. However, the company is investigating whether its president could have been the target of foreign intelligence activities.
Nvidia is the second most valuable company in the world, second only to Apple. Its position is primarily due to the key role that the integrated circuits it produces play in the development of artificial intelligence.
Reports regarding possible connections between the head of Nvidia and a person suspected of espionage sparked a reaction from investors. On Monday, the company's market value fell by about $250 billion. The company's share price dropped by over 4%.
Also on Monday, a lawsuit was filed in California against Jensen Huang and Nvidia. The case was brought as part of a planned class action lawsuit.
The plaintiffs accuse the president and the company of misleading shareholders by concealing information about Huang's connections with Alice Huang.
The lawsuit also included an allegation that Nvidia had lied to the media about its president's relationship with a woman who - as indicated in the documents - is suspected of trying to help smuggle the company's products to China.
The authors of the lawsuit claim that the disclosed information could have been important for shareholders who made investment decisions without knowledge of the potential threats related to this matter.
