Was Lutnick warned about Nvidia CEO’s Jensen Huang alleged affair with Chinese spy? What we know

US Commerce Secretary Howard Lutnick was reportedly alerted to Nvidia CEO Jensen Huang’s ties to a woman suspected of being a Chinese intelligence agent. The warning came before the Commerce Department cleared several Chinese companies to purchase Nvidia’s advanced processors, despite the potential national security concerns surrounding the relationship.

According to an Axios report, citing multiple sources familiar with the matter, Lutnick had received a classified memo detailing Nvidia CEO Jensen Huang’s relationship with Alice Huang, a woman US intelligence officials suspect of working for Chinese intelligence.

The disclosure raises fresh questions about whether the department fully considered the potential security implications while approving exports of advanced American chips to China-linked businesses.

What was in the classified memo?

The warning was prepared under the supervision of Secretary of State Marco Rubio, The New York Times reported. It reportedly contained details gathered through surveillance of Alice Huang, as well as a chip-smuggling investigation involving her company, Megaspeed.

The memo was circulated ahead of Trump’s May 13-15 visit to China. Rubio also brought the matter to Trump’s attention aboard Air Force One before the president’s refuelling stop in Anchorage. Huang was travelling with the delegation, although he had not initially been invited, the report said.

The timing of the warning is now under scrutiny. On May 14, Reuters reported that the Commerce Department had authorised around 10 Chinese companies to buy Nvidia’s H200 processors.

Not all the approvals came after the intelligence warning. Nvidia had disclosed receiving an H200 export licence in February, and Huang told Axios in March that the company held licences covering Chinese customers.

Trump says he does not remember the warning

Trump was asked on Monday whether intelligence officials had shown him the information. He said it was possible, but he could not recall.

“Certainly, it didn’t make much of an impact on me,” he said.

The fallout has been considerable for Nvidia. Megaspeed reportedly bought billions of dollars' worth of the company's chips, while the controversy surrounding Huang has put the chipmaker under growing pressure.

Huang acknowledged having an affair on Sunday. Nvidia’s board has since ordered an independent investigation, while expressing confidence in his leadership and saying it had no reason to believe national security secrets were compromised.

The issue is also heading towards Congress. Lawmakers from both parties have called for investigations, with top Democrats on the House Foreign Affairs Committee demanding answers from Lutnick over chip approvals involving companies with concerning China links.

Huang is expected to face closed-door questioning from lawmakers next week.