US Secretary of State Marco Rubio has overseen the drafting of a classified intelligence memo warning senior Trump administration officials that Nvidia Chief Executive Officer Jensen Huang had developed a close relationship with an alleged Chinese intelligence operative, the New York Times reported.
The warning, drafted under Rubio's supervision in the spring of this year, circulated among national security officials holding high-level clearances ahead of a bilateral state visit to China in May by US President Donald Trump.
The document stemmed from electronic surveillance targeting Chinese businesswoman Alice Huang, who is unrelated to the Nvidia chief.
She worked as a senior executive at Megaspeed International, a Singapore-based data centre company that purchased advanced artificial intelligence processors while under federal investigation for illegally bringing semiconductors into mainland China.
Chip giant Nvidia's board announced on Sunday it opened a probe into Huang after he acknowledged an affair with a woman US officials say was working for Chinese intelligence.
In a message to company employees released Sunday, Huang acknowledged having an affair and apologised to both his family and company staff.
"I was unfaithful to my wife," he said. "My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry."
"Great Jensen Huang"
Jensen Huang was initially excluded from the official business delegation travelling with Trump to China.
US President Donald Trump called Huang an honourable person and praised his contributions to the United States, but said he had not spoken to him about allegations of a relationship with a Chinese businesswoman who passed information to Beijing.
"I have not spoken to him about it. I just know he's a fine person, but you never know what is going on," Trump told reporters. "I hope everything's fine."
"I think he's an honourable guy," Trump said, adding that Huang had "done an amazing job for our country."
Nvidia earlier said that Huang's interactions with Alice Huang were "not unusual or unexpected," characterising them as standard commercial engagements and noting that Megaspeed never received classified corporate data or trade secrets.
China rejected a related report by the New York Times in October, dismissing the allegations as "unsubstantiated" and "nothing but a smear against China."
The White House, the State Department and the Central Intelligence Agency declined to comment, the New York Times said, while Alice Huang did not respond to requests for comment.
