WASHINGTON, D.C.: The FBI is looking into Nvidia CEO Jensen Huang's affair with a Chinese businesswoman alleged to be a spy for Beijing, U.S. President Donald Trump said on November 9, as the controversy around the head of the world's most valuable chipmaker deepened.

"I know the FBI is looking into it," Trump said. "I think that he'll be in good shape," he added.

Trump said he "was amazed" by allegations about Huang, among the president's closest allies in Silicon Valley. Trump said he had spoken to the CEO, who told him that he had no idea that the woman was a spy.

Nvidia shareholders quickly sued Huang and the company in a proposed class action on November 9, accusing them of defrauding shareholders by concealing Huang's ties to a suspected Chinese spy.

Lawmakers and advocates told Reuters that Congress was more likely to pass legislation to tighten China's access to AI chips in light of news of Huang's relationship with a suspected Chinese intelligence agent. U.S. House of Representatives Democratic leader Hakeem Jeffries said on November 9 that Congress needs more answers and called for the House to pass an annual defense bill that includes restrictions on chip sales to China.

Nvidia's board launched an internal investigation, announced on November 8, into whether Huang had been targeted by a foreign intelligence effort. Huang told Nvidia's employees that he had been unfaithful to his wife, without disclosing details of the relationship.

The New York Times reported last month that Huang had a relationship with Alice Huang, an unrelated former executive of Singapore-based company Megaspeed, who U.S. authorities investigated and concluded was a Chinese intelligence asset. The newspaper also reported that Trump was briefed on the relationship and that she was giving information to the Chinese Government, and that the president chose not to act on the information.

"The so-called Chinese spy narrative is purely a groundless accusation, slander, and a smear," Chinese Foreign Ministry spokesperson Guo Jiakun told reporters in Beijing.

Huang's relationship with Trump has coincided with several favorable policy developments for the company, and the president awarded him the nation's highest honor for scientific achievement in October. The same day, the president disclosed buying up to US$1.6 million and selling up to $1 million of Nvidia shares during the summer.

Nvidia said its board has confidence in Huang. Analysts acknowledged uncertainty around succession, but most do not expect the investigation to result in the longtime CEO stepping down.

"Nvidia is not an ordinary company, and Jensen is not an ordinary CEO; he is Nvidia, clearly sets the long-term strategy and direction, and pulls most of the company's strings himself," said Stacy Rasgon, an analyst at Bernstein.