New York:The FBI has initiated an investigation into Nvidia CEO Jensen Huang following allegations of his involvement with a woman suspected of being a Chinese spy. This development comes amid concerns over potential national security risks posed by the relationship.

According to Thai News Agency, U.S. President Donald Trump has defended Huang, stating that the CEO acted unknowingly regarding the woman's alleged espionage activities. Trump revealed that he had questioned Huang about the matter, to which Huang responded that he was unaware of her suspected spy status.

Huang, who leads Nvidia, a major player in the global computer chip industry, acknowledged the extramarital affair with a former executive of a Singaporean data center company. The U.S. authorities suspect her of being an espionage agent for China. Nvidia is conducting its own investigation to assess any threats to national security and confidentiality.

The news of the investigation negatively impacted Nvidia's stock market performance. Upon the New York Stock Exchange's reopening, the company's stock dropped by over 4 percent, resulting in a significant loss in market value. This decline follows a recent downturn in AI technology stocks linked to the outcome of the U.S. midterm elections.

Additionally, Huang and Nvidia face a class-action lawsuit in California. Plaintiffs accuse Huang of violating shareholder rights by concealing his relationship with the suspected espionage agent and failing to disclose national security concerns. The allegations extend to claims that Nvidia products were smuggled into China, which the Chinese government has denied, dismissing the espionage accusations as unfounded.