China's foreign ministry says allegations of spying in relation to US tech giant Nvidia are "unsubstantiated" and "smears against China".
The comments came after the company's chief executive, Jensen Huang, admitted to having an affair with a woman suspected of being a Chinese spy.
Mr Huang, a close ally of US President Donald Trump, sent a memo to staff acknowledging the affair after reports emerged the woman worked for China's Ministry of State Security.
The board of Nvidia, the world's most valuable company, has launched an independent investigation into whether Mr Huang was the target of a foreign intelligence effort.
What has been reported?
The story centres on the Nvidia chief executive's relationship with Alice Huang, a Chinese citizen and executive at Singapore-based data centre company Megaspeed, a customer of Nvidia.
In October, The New York Times reported Megaspeed was under scrutiny for possibly steering advanced Nvidia AI chips to Beijing, which are barred from shipment to China.
US officials reportedly concluded Ms Huang was a Chinese intelligence asset and developed a close relationship with Mr Huang.
The NYT reported Mr Trump was briefed on the intelligence findings about a year ago and did nothing.
Further reporting over the weekend said US officials had intelligence Ms Huang was working for China's Ministry of State Security.
The Financial Times also reported the development, saying a memo circulated among top policymakers shortly before Mr Trump flew to Beijing for a summit with Chinese President Xi Jinping earlier this year.
The Chinese government dismissed the NYT report as "groundless speculation".
And on Monday afternoon, in response to questions at a foreign press briefing, China's foreign affairs ministry spokesperson Guo Jiakun said: "We have already responded to this matter. The allegations regarding so-called Chinese spies are pure groundless speculation and slander."
Who is Jensen Huang?
Mr Huang is an influential ally of Mr Trump and a leading figure in the US's efforts to dominate the AI race against China.
Mr Huang co-founded California-based Nvidia in 1993 and has served as president and chief executive ever since.
Leading AI companies such as Anthropic and OpenAI rely on Nvidia's hardware to operate, so the company wields a lot of power in the US and across the industry.
Nvidia surpassed Microsoft in June 2025 to become the world's most valuable company. A recent Forbes report said the company hit a market capitalisation of more than $US5 trillion ($7 trillion).
Mr Huang previously lobbied Mr Trump to lift a ban on the sale of advanced AI chips to China, arguing the restrictions accelerate Beijing's own development of the technology.
Mr Huang was born in Taiwan and raised in Thailand before he emigrated alone to the US to attend boarding school at 10 years old.
He met his wife, Lori, at university and the pair have been married for over 40 years.
What do we know about the investigation?
Nvidia announced on Sunday, local time, it had launched an independent probe "in light of recent reporting that founder and CEO Jensen Huang has been the target of a foreign intelligence effort".
It said while the company's board had "no reason to believe" either US national security or Nvidia secrets were compromised, the probe would "examine all available information".
Loading...Nvidia said a committee of independent directors, assisted by outside independent counsel, would oversee the investigation.
Mr Huang will remain chief executive during the inquiry.
"Today's news will not slow Nvidia," company spokesperson John Rizzo said in a statement.
"Jensen is committed to continuing to lead Nvidia as CEO without interruption."
It is unclear if the CIA is also investigating.
The White House and CIA declined to comment to both the NYT and FT. Ms Huang could not be reached for comment by either outlet.
What has Huang said?
Shortly before Nvidia announced the probe, Mr Huang admitted to his affair with Ms Huang in a lengthy memo to staff.
He said he was "unfaithful" to his wife and there was "no excuse" for his actions, adding he was "deeply sorry".
Addressing the "national security concerns raised in news reports", he said he would fully cooperate with the investigation.
He said he was "committed to protecting Nvidia and supporting America's national security".
Jensen Huang's memo to staff
Read moreI owe my family and all of you an apology.
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.
Throughout my life, my family has given me love and support. They deserve my honesty and loyalty. Instead, I let them down and damaged the life we built together. I take full responsibility for what I did and the hurt I caused, and I accept the criticism that comes with it.
To my wife and family: I love you. I know an apology cannot undo what I have done. I hope our family will heal and that, over time, I can earn back your trust.
To my colleagues at NVIDIA, including those I have worked alongside for decades, and to our board, partners, and shareholders around the world: you deserve better from me.
Leading NVIDIA is the privilege of my life. My responsibility is to serve you and be worthy of your trust. I have fallen short of that responsibility. I am fully committed to NVIDIA and will work to earn back your confidence.
Regarding the national security concerns raised in news reports, 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.
My family bears no responsibility for my choices. I do. Please give them privacy.
How did Trump respond?
After Nvidia announced its investigation, Mr Trump said he had not spoken to Mr Huang about the allegations but said he had "done an amazing job for our country".
"I have not spoken to him about it. I just know he's a fine person, but you never know what is going on," Mr Trump told reporters.
"I think he's an honourable guy … I think he probably has an excuse for it. You have to hear it."
When asked if he would take Mr Huang on his trip to Asia next week, Mr Trump said: "I don't know, but I'd certainly take him."
Secretary of State Marco Rubio said he could not comment on the matter.
"I just can't comment because of the nature of it," he told reporters on his way to a G7 meeting in Paris.
"And I also can't comment on an internal corporate matter that's going on with Nvidia."
What could come next?
Top Republicans in the US House of Representatives have called on Mr Huang to brief Congress this month about the reports.
Chris Coons, a Delaware Democrat who will chair the Senate's foreign relations committee from January, shared the NYT report on social media with a pledge to open an investigation.
"The more I learn about the insane relationship between the Trump Administration, Chinese spies, and AI billionaires, the more I'm convinced there is nothing this administration does that isn't corrupt," he said.
"Congress will investigate and get answers."
Bloomberg's North Asia correspondent Minmin Low said there was uncertainty about what could come next.
"Will there be stricter restrictions when it comes to US investment overseas? Does this delay Nvidia's billions of dollars that are being poured into areas like advanced packaging and to its suppliers in Asia?" she told ABC's News Channel.
"If you look at the market reaction today, it seems like markets are quite resilient … investors are not seeing this as a change to the fundamentals of the AI trade.
"Of course, there is some short–term sentiment that is shaken at the moment, but a lot really rests on the ongoing investigation."
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