Trump Backs Nvidia CEO Amid Spy Allegations; Tusk Urges Hill Probe

Trump has expressed support for Nvidia CEO Jensen Huang following Huang's admission of an affair with an alleged Chinese spy. Bradley Tusk, CEO of Tusk Ventures, is calling on Congress to investigate the relationship between Trump and Huang.

Despite Nvidia's market capitalization exceeding $4 trillion, the company's stock fell roughly 4% on Monday, according to ABC News, after its board launched an independent investigation. Tusk argues that ignoring the issue would increase mistrust in the artificial intelligence economy.

Is the Matter of Jensen Huang Resolved by Trump's Endorsement?

On Sunday, Trump told reporters that Huang ought to stay on as CEO, although he had not discussed the situation with him.

“I think he’s an honorable guy. I think he probably has an excuse for it. You have to hear it.”

Trump, via CNBC

CNBC's Eamon Javers characterized the comments as a cautious display of support rather than a full-throated defense.

Huang acknowledged the relationship in a staff memo on Sunday. Alice Huang, who is not related to him, served as an executive at Megaspeed, a Singapore-based data center company that is an Nvidia customer.

The New York Times reported that U.S. intelligence concluded she transmitted information to Beijing. However, China's government has dismissed the accusation as groundless, and Nvidia has stated that Huang's interactions with customers are standard practice.

Javers noted that at least four investigations are underway, involving Congress, Nvidia's board, law enforcement, and intelligence agencies. Separately, three House Republican chairs requested that Huang brief them behind closed doors on Nov. 18.

Could an Inquiry Affect Trump's Policies on China Chip Sales?

Tusk stated that Huang ought to step aside temporarily while an investigation is conducted. He also called on the Commerce Department to prohibit Nvidia from selling chips to China.

Tusk supports the AI Overwatch Act, a bipartisan piece of legislation concerning AI chip exports. It would provide Congress with 30 days to review and potentially deny licenses to countries of concern, including China.

The Times also reported that Trump was briefed on the intelligence a year ago and took no action.

Any investigation reaching Trump's interactions with Huang could also scrutinize the president's approval of H200 chip sales to China. Axios reported that Trump continued hosting Huang while pushing to ease restrictions on chip exports.