The Federal Bureau of Investigation (FBI) is investigating allegations involving Nvidia founder and CEO Jensen Huang and a woman suspected of working as an agent for the Chinese government, US President Donald Trump said on Tuesday.

Speaking to reporters at the White House, Trump said he doesn't think the executive, who has helped develop artificial intelligence, has reason to worry.

"I know the FBI is looking into it in terms of something else, and I think that he'll be in good shape," Trump said.

The controversy erupted after The New York Times reported on Huang's alleged relationship with a Chinese businesswoman identified as Alice Huang, also known as Huang Le. According to the report, the woman allegedly cultivated a close relationship with the Nvidia CEO and was suspected of facilitating the transfer of advanced Nvidia AI chips and intelligence to Beijing.

Trump said he had spoken to Huang, who reportedly told him that he was unaware of the woman's alleged links to Chinese intelligence.

"I did speak to him today just to see if he's feeling all right, how you're doing," Trump said. "He said he had absolutely no idea that the person in question was a spy."

Nvidia has announced an independent investigation into reports that Huang was the target of a foreign intelligence operation. A special committee comprising independent directors will oversee the probe, assisted by external independent legal counsel.

Alice Huang, with whom the Nvidia chief allegedly had an extramarital relationship, has been identified as a former executive of Singapore-based company Megaspeed.

Meanwhile, in a related development, Nvidia and its CEO are facing a proposed class-action lawsuit accusing them of misleading shareholders by allegedly concealing Huang's relationship with the woman suspected of having links to Chinese intelligence.

The complaint, filed in a federal court in San Jose, California, alleges that the defendants failed to disclose information about Huang's alleged relationship with Alice Huang and the potential national security implications of the matter. It further claims that the alleged non-disclosure exposed Nvidia to reputational damage and business risks.

Following the controversy, Huang’s wealth has taken a hit as Nvidia shares came under pressure amid concerns surrounding the investigation.

Huang has slipped from eighth to 10th on Forbes’ billionaire rankings, falling below Berkshire Hathaway chief Warren Buffett and Oracle co-founder Larry Ellison. 

Disclaimer: Comments posted here are the sole responsibility of the user and do not reflect the views of THE WEEK. Obscene or offensive remarks against any person, religion, community or nation are punishable under IT rules and may invite legal action.