According to reports from The New York Times, which were corroborated by multiple sources, Secretary of State Marco Rubio oversaw the drafting of the memo. The document, which drew on surveillance of Alice Huang and an investigation into her company, Megaspeed, circulated among senior officials ahead of Trump’s May 13–15 visit to Beijing. Rubio also reportedly warned Trump directly aboard Air Force One during a refueling stop in Anchorage, where Jensen Huang joined the presidential delegation. Huang had not initially been invited to participate in the trip, according to the New York Times.
The timing of the intelligence briefing is significant given the US Department of Commerce’s role in regulating the export of advanced semiconductors to China. Commerce Secretary Howard Lutnick, who heads the agency charged with preventing sensitive US technology from reaching American adversaries, was also sent the memo. This raises questions about how the department weighed potential security risks when it cleared advanced Nvidia chip sales to China-affiliated entities. On May 14, Reuters reported that the Commerce Department had cleared approximately 10 Chinese companies to purchase Nvidia’s H200 chips. Some of these export approvals predated the circulation of the warning memo. Nvidia disclosed in February that it had received an H200 export license, and Huang told Axios in March that the company held licenses covering Chinese customers. However, it remains unclear how many of these approved sales were completed, as the Chinese government has halted some chip-buying activity despite US approvals.
When asked on Monday whether he had known about the suspicious ties during the May visit, Trump stated, “No, I hadn’t heard about it then.” However, he later acknowledged that it was possible intelligence officials had shown the details to him but said he did not recall, adding, “Certainly, it didn’t make much of an impact on me.” Trump said he had spoken with Huang, who claimed he was unaware that the woman with whom he was involved was suspected of espionage. The President expressed confidence in Huang’s account. The Commerce Department did not comment on the matter.
The affair has placed Nvidia under intense scrutiny, with the company losing approximately $1 trillion in market value since The New York Times first reported the relationship last month. While part of the decline is attributed to political shifts following the midterm elections, where Democrats promised to slow AI data-center buildouts, the security implications have compounded the financial hit.
In response to the allegations, Nvidia’s board of directors announced Sunday that it would launch an independent investigation into whether Huang was the “target of a foreign intelligence effort.” The board has hired Joon H. Kim, a former acting U.S. Attorney and partner at the elite Wall Street law firm Wachtell, Lipton, Rosen & Katz, to lead the probe. Wachtell, founded in 1965, is known for handling high-stakes corporate matters, including advising Twitter during Elon Musk’s acquisition and investigating misconduct allegations in the NBA. The board stated it has no reason to believe national security secrets were compromised and expressed confidence in Huang’s leadership.
Alice Huang’s company, Megaspeed, purchased billions of dollars’ worth of Nvidia chips, according to multiple media outlets. US intelligence officials concluded that Alice Huang was acting as a spy for China’s Ministry of State Security. The investigation into Megaspeed for chip smuggling formed a key part of the intelligence that led to the creation of the classified memo.
The situation has drawn attention from US lawmakers, who are pushing for stricter rules on China chip exports in light of the allegations. The incident highlights the intersection of corporate influence, national security, and the technological competition between the United States and China. While the independent investigation is ongoing, the core unresolved question remains whether the export approvals granted to Chinese entities in May were made with full awareness of the security risks associated with the CEO’s personal ties.
