China’s Ministry of Foreign Affairs on Monday dismissed reports that the country had dispatched a spy to ensnare Jensen Huang, the chief executive of artificial intelligence chipmaker Nvidia, as the company’s stock fell sharply in response to the growing scandal.
“The ‘Chinese spy’ allegation is purely unsubstantiated and directed at smearing China,” Ministry of Foreign Affairs spokesman Guo Jiakun told reporters.
Huang admitted Sunday to an affair with Alice Huang, an executive at a Nvidia customer named Megaspeed and a suspected Chinese spy. Nvidia’s board said Sunday it would launch an independent investigation.
The company’s stock fell more than 5 percent when the markets opened Monday morning. The chipmaker is vital to the AI industry, making many of the most powerful computing components that drive the technology.
Huang founded the firm in the 1990s, rising to become one of the most powerful business leaders on the planet. The company said Sunday that Huang was committed to staying on as its leader.
The New York Times first reported on the links between Jensen Huang and Alice Huang in October, reporting President Donald Trump had been briefed but chose not to take action. Trump and Jensen Huang have been close allies as the administration has sought to speed the development of AI.
Chip policy experts raise broader questions about the competition between the United States and China over the technology. American companies lead the industry, and many in Washington have sought to use export restrictions to keep the most powerful chips out of Chinese hands. But Nvidia has argued for allowing at least some exports, which the administration permitted last year.
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