China Denies Spy Allegations Involving Nvidia CEO Jensen Huang, Calls Them Smears

China has rejected allegations that its intelligence services targeted Nvidia CEO Jensen Huang, calling the claims baseless and defamatory. The refusal comes after Nvidia had been investigating allegations that Huang was a business executive collecting intelligence for Beijing.

China Rejects Allegations of Spying on Nvidia CEO

During a regular press briefing Monday, Chinese Foreign Ministry spokesperson Guo Jiakun responded to the charges. He said the accusations were unsupported and denied any reports that Beijing had tried to get information via Huang.

“The so-called Chinese spy allegation is unsubstantiated. It’s just smears against China,” Guo said. The assertion came after reports of a US intelligence suspicion against a business executive regarding his collection of data for the Chinese government.

The reports named an ex-Singapore-based Megaspeed International executive, Alice Huang. The company buys high-end Nvidia chips and has been hit with charges of illegally shipping its hardware to China. Beijing, however, has dismissed the intelligence claims, and the alleged espionage activity has not been substantiated in public.

Nvidia Announces Independent Probe into Jensen Huang

Nvidia’s board announced an independent investigation on November 8 to examine whether Huang had been targeted by foreign intelligence. Independent directors and outside lawyers will be responsible for the review, and Huang has agreed to cooperate.

The company stated it did not suspect that it had been hacked or that any information it shared with the US national security community was compromised. But the board plans to review the evidence before deciding if any company information was leaked.

Huang admitted that he was unfaithful to his wife and apologized to his family and employees at Nvidia. He said he acknowledged his wrongdoing but did not reveal the name of the woman involved. The probe comes amid growing scrutiny of Nvidia’s business ties and demand for AI chips.

Nvidia Shares Drop as China Chip Restrictions Loom

Shares of Nvidia plunged about 5% in early Monday pre-market trading as investors responded to the probe. The drop came as Nvidia’s business ties with Chinese tech firms and Huang’s tenure as CEO came under renewed criticism.

The chipmaker has been under US export restrictions aimed at curbing China’s ability to access cutting-edge artificial intelligence chips. Huang previously pushed Washington to ease those restrictions, and President Donald Trump approved sales of Nvidia’s H200 chips this year.

The company has maintained commercial ties with Washington, where Trump previously disclosed Nvidia stock transactions. Nvidia, however, has noted sluggish H200 sales in China in August due to the ongoing impact of Chinese government restrictions on purchases.

In the meantime, Nvidia’s board has said it does not doubt that Huang has the ability to lead the company even as the investigation continues. The company has not declared when the review will be completed or any proof that the confidential information was breached.