China rejects spy plot claims against Nvidia CEO Jensen Huang

China denied on Monday that it attempted to ensnare Nvidia CEO Jensen Huang, labeling the spying allegations as unsubstantiated and a smear campaign against Beijing.

Huang acknowledged in an open letter posted on Nvidia’s website that he had been intimate with a business executive. He issued an apology to his wife and the company but did not name the woman.

Nvidia announced on Sunday that it is conducting an independent investigation into reports that Huang was the target of a foreign intelligence effort.

The New York Times reported that U.S. intelligence determined the woman was gathering information for Beijing. The paper identified the woman as Alice Huang, a former executive of a Singapore-based data center company called Megaspeed International.

Megaspeed International’s website prominently touts its partnership with Nvidia. The company last year faced claims that it was illicitly shipping advanced Nvidia computer chips into China.

Ministry of Foreign Affairs spokesperson Guo Jiakun rejected the claims during a routine news briefing on Monday. "The so-called Chinese spy allegation is unsubstantiated. It is nothing but smears against China," Guo said.

Beijing had earlier dismissed the New York Times report, stating that Huang developed a close relationship with a Chinese citizen. Chinese state media outlets have mainly echoed the official government line, with some suggesting the report aimed to destabilize U.S.-China relations.

Nvidia shares dropped roughly 5 percent in pre-market trading early Monday. Nvidia is one of the world’s most valuable publicly traded companies, alongside Apple and Microsoft.

In his letter, Huang stated, "I support the investigation and will cooperate fully. I love our country and our company. I am committed to protecting NVIDIA and supporting America’s national security."

George Chen, a partner and chair of digital practice at The Asia Group, a Washington-based consultancy, noted that the key questions are whether Huang was aware of any espionage activities and whether confidential or strategically sensitive information was compromised. "Those questions require evidence rather than speculation," Chen added in a text message to reporters.

Huang has lobbied Washington to loosen limits on sales of Nvidia chips to China in recent years. He won U.S. President Donald Trump’s approval for selling H200 chips this year. Nvidia said in a regulatory filing in August that it has sold only a small amount to China because such sales are restricted by the Chinese government.

The H200 chips are not Nvidia’s most cutting-edge models, but they remain advanced. Huang also lobbied Trump to be allowed to sell Nvidia’s less-advanced H20 chips, which were designed to comply with U.S. export restrictions on China. It is unclear if Beijing would allow Chinese companies to buy the H200 chips in large quantities.