Report: Trump Ignored Intelligence on Chinese Spy Close to Nvidia CEO to Protect Stock

Image: Ars Technica · Source

Donald Trump reportedly disregarded U.S. intelligence about a Chinese spy close to Nvidia CEO Jensen Huang, partly to avoid disrupting Nvidia’s stock and chip sales amid delicate U.S.-China trade relations.

According to a detailed report by Ars Technica citing The New York Times, former President Donald Trump was informed about a Chinese espionage attempt targeting Nvidia CEO Jensen Huang but chose not to act on the intelligence. The spy, Alice Huang (no relation to Jensen Huang), is a Chinese national and former executive at Singapore-based cloud company Megaspeed. U.S. intelligence agencies suspected she exploited her position to access Jensen Huang and funnel sensitive information about Nvidia to China.

Sources with knowledge of classified intelligence revealed that around a year ago, Trump was briefed that Beijing was receiving reports from an insider with direct access to Jensen Huang. Despite this, Trump refrained from responding, reportedly due to concerns about potential negative impacts on Nvidia's chip sales and the fragile U.S.-China trade détente. Treasury Secretary Scott Bessent noted Trump’s close alignment with Jensen Huang, underscoring the unusual political relationship between the president and the tech CEO.

The U.S. investigation into Alice Huang included electronic surveillance that uncovered her contacts with an American citizen who was subsequently identified as Jensen Huang through a legal unmasking process. Despite the suspected espionage, Nvidia publicly stated that Alice Huang did not have access to trade secrets. Notably, Jensen Huang was not warned or given a defensive briefing about the possible spying, possibly to avoid tipping off Alice Huang that she was under surveillance.

Megaspeed, which planned to purchase $2 billion worth of Nvidia chips, is suspected by U.S. agencies of potentially diverting technology to China, possibly aiding Chinese advancements in AI, military applications, and surveillance. The company’s true operations remain unclear, with reports indicating its Singapore-based ownership is a front for Chinese interests. Following intensified U.S. scrutiny, Alice Huang was removed from Megaspeed's corporate documents, and investigations have continued under the Department of Justice.

Nvidia CEO Jensen Huang's close interactions with Alice Huang, including social occasions where Huang was able to get Jensen to attend a party and socialize, have raised concerns among U.S. officials about the depth of their relationship. Despite this, Nvidia maintains that Jensen Huang’s interactions with customers like Alice Huang are routine for a CEO.

This episode highlights the complex intersection of corporate influence, international espionage, and high-stakes technology diplomacy. The U.S. crackdown on technology transfers and export controls continues to grapple with challenges posed by covert foreign influence in critical industries such as AI and semiconductors.