Trump says FBI investigating Nvidia boss's affair with alleged Chinese spy

US President Donald Trump has said the FBI is investigating the affair between the chief executive of Nvidia and an alleged Chinese spy.

Trump said he spoke to Jensen Huang on Monday following reports that the US believed he had been targeted in a Chinese espionage campaign.

"I asked him that question, 'Did you have any idea she was a spy?' He said 'I had no idea she was a spy' and I really believe him," Trump told reporters.

Beijing has rejected claims that Huang was targeted, with its foreign ministry saying the allegations were "entirely groundless, speculative and intended to smear and malign China".

Nvidia, which has commissioned an independent investigation into the affair involving Alice Huang, alleged to be a Chinese spy, said it had no reason to believe the company's secrets or national security were compromised.

Nvidia is the world's second most valuable company after Apple, and designs computer chips that have become central to AI technology. The revelations knocked about $250bn (£190bn) off its value on Monday as the company's share price fell by more than 4%.

Trump later told reporters at the White House that the FBI was looking into the issue, but did not elaborate on the investigation, or when it was launched. The FBI declined to comment when contacted by the BBC.

US intelligence officials believe Alice Huang, also known as Huang Le, was a spy for Beijing, according to a New York Times report. She is not related to Jensen Huang.

According to the newspaper, Secretary of State Marco Rubio sent a memo to top officials in Washington last spring, warning that the Nvidia boss was in a close relationship with a Chinese spy.

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Alice Huang was managing director of Singaporean company Megaspeed, which has had dealings with Nvidia.

Trump's remarks are the first indication of whether Nvidia's Huang knew about the woman's alleged ties to Chinese espionage.

Megaspeed's office in Singapore's central business district appeared to be operational and staffed on Tuesday.

The BBC was refused entry to its floor, but spoke to a staff member by phone who said they had no comment and directed all queries to the company's PR team.

The BBC has emailed Megaspeed several times for comment.

Nvidia, co-founded by Jensen Huang, is also a major focus in the AI technology race between the US and China, with officials in Washington treating its exports to Beijing as a matter of national security - a key reason why Huang's affair has sparked concerns.

Also on Monday, Huang and Nvidia were sued in a proposed class action lawsuit in California that accuses them of defrauding shareholders by concealing his ties with the suspected Chinese spy.

The lawsuit alleges that the company lied to the media about Jensen Huang's relationship with Alice Huang, "who is suspected of seeking to help smuggle Nvidia products to China."

The BBC has contacted Nvidia for comment on the lawsuit.

'He said he had no idea she was a spy'

At the White House, Trump was asked several times, including by the BBC, when he was made aware of the relationship. He said he was informed "over a period of time" but was not specific.

Trump said he thought that Huang was an "honourable guy and I feel very confident that he will be in good shape" after the investigations.

"I hope there's no problem, I believe he is suffering greatly," the president added.

He said he spoke to Huang on the phone on Monday "just to see if he's feeling alright, how you doing, and I asked him about that and he said he absolutely had no idea that the person in question was a spy".

Trump has raised concerns that allowing China to lead in AI would supercharge Beijing's military and surveillance capabilities.

The president added he was "sure" Chinese leader Xi Jinping would "ask me about it" when they next met.

Huang has admitted that he was "unfaithful" to his wife and apologised for hurting her and their children.

He said on Monday that he was "committed to protecting Nvidia and supporting America's national security" and would cooperate with the investigation the company had launched.

Huang has also been requested to appear for a joint closed-door briefing for several Congressional committees next week, however it is unclear whether Huang will appear.

A letter said the briefing would be "on Nvidia's security protocols against foreign adversary espionage and your interactions with a publicly reported People's Republic of China (PRC) intelligence asset: Megaspeed executive Alice Huang".