Lawmakers briefed on Nvidia affair as security concerns mount
WASHINGTON — The Trump administration has briefed top lawmakers on a growing national security crisis around the world’s leading chipmaker, Nvidia, after its chief executive, Jensen Huang, admitted over the weekend to an extramarital affair with a suspected Chinese spy.
Senior U.S. intelligence officials briefed the Gang of Eight — congressional leaders from both parties, and the chairs and vice chairs of the House and Senate intelligence committees — on the matter, House Democratic Leader Hakeem Jeffries said on Monday.
Congressional Republicans have called on Huang himself to provide an update, warning the incident raised “significant national security concerns” that could have compromised cutting-edge American technology at a critical moment in the race with China for supremacy in artificial intelligence.
Huang admitted Sunday to having an affair with Alice Huang, who was identified as a Chinese intelligence asset by U.S. authorities, after the New York Times reported that Secretary of State Marco Rubio had raised concerns within the administration about his potential compromise.
President Trump is scheduled to visit China next week.
“I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry,” Jensen Huang said in a statement Sunday.
“Regarding the national security concerns raised in news reports,” he added, “NVIDIA’s Board of Directors has initiated an independent investigation. I support the investigation and will cooperate fully. I love our country and our company, and I am committed to protecting NVIDIA and supporting America’s national security. I am proud and grateful to be an American.”
Debate over export controls for the world’s most advanced semiconductor chips, produced by Nvidia, has raged over the last eight years in Washington, with lawmakers across party lines expressing concern that Chinese access to the chips could strengthen their hand in the development of the most powerful AI models.
Huang has been one of the most vocal opponents of the U.S. export controls, calling them a “mistake” and saying they were hurting American businesses more than they were constricting Chinese government efforts.
The executive was successful in lobbying the Trump administration to ease export restrictions on some of Nvidia’s most advanced chips over the past year.
Jeffries said he would be calling for greater export controls on chips after the incident. The New York congressman is expected to become the next speaker of the House after Democrats swept into power in this month’s midterm elections.
“We’re going to need a full briefing specifically as it relates to the Nvidia issue,” Jeffries said, adding that “real concerns” have arisen from the case that will need to be addressed.
U.S. intelligence unmasked the Chinese intelligence operation after intercepting the communications of Alice Huang, a former journalist with Chinese state media who later became a senior executive at Megaspeed International. The Singaporean data center firm was already under the microscope for allegedly funneling restricted AI chips to Beijing.
Trump was reportedly made aware of the Chinese espionage effort targeting Huang, but chose not to act, according to the New York Times.
Nvidia’s stock dropped more than 4% Monday, after the board said it would open an investigation into its chief executive being the “target of a foreign intelligence effort.”
The company “prioritizes U.S. national and economic security, which is paramount to the interests of NVIDIA and its shareholders,” it said in the statement.
“While the Board has no reason to believe that either national security or NVIDIA secrets were compromised, the Board’s inquiry will examine all available information,” it continued. “The Board has confidence in Jensen and his leadership team and will provide further updates as appropriate.”
Rubio declined to address questions from reporters on the matter Monday.
“It’s an internal corporate matter for them, so I’m just not going to comment on that topic,” the secretary of State and national security advisor said.
But the administration could face increased calls to investigate Jensen Huang, a Trump ally, who traveled with Trump to Beijing in May and attended a state dinner for Chinese President Xi Jinping in September held at the White House.
Republicans have also formally requested Huang appear before the House on Nov. 18 — when Trump will be in China — to brief them on what happened.
Rep. Brian Mast of Florida, chairman of the House Foreign Affairs Committee, Rep. Rick Crawford of Arkansas, head of the House Intelligence Committee, and Rep. John Moolenaar of Michigan, who leads the House Select Committee on the Chinese Communist Party, said the issue of Chinese infiltration and access to cutting-edge U.S. technology “is core to the investigative work of our three committees this Congress.”
“It is vital that Congress determines the extent to which U.S. national security has been placed at risk,” they wrote.