Despite spy warnings, Trump called Huang to urge him to stay at Nvidia before resignation - report

Trump made the call despite receiving at least two intelligence warnings that a woman Huang was involved with had been recruited by China’s Ministry of State Security.

US President Donald Trump called Nvidia CEO Jensen Huang on Tuesday and urged him to continue fighting to keep his position, just two days before Huang was forced to step down amid a spying scandal and revelations of extramarital affairs, The New York Times reported on Thursday, citing two people briefed on the conversation.

According to the report, Trump continued defending and supporting Huang until the last moment, even though US intelligence agencies had concluded that a woman with whom he had a romantic relationship had been recruited by Chinese intelligence.

Huang, who co-founded Nvidia and transformed it into the world's leading manufacturer of advanced artificial intelligence chips, has emerged in recent years as one of Trump's most prominent allies in Silicon Valley and an influential adviser on technology and artificial intelligence.

According to The New York Times, Trump received at least two intelligence warnings concerning Huang's relationship with a Chinese national named Alice Huang, whom US intelligence agencies assessed had been recruited by China's State Security Ministry, which is responsible for intelligence operations, among other activities.

The first warning was delivered to the president late last year, and the second came in the spring. Despite the warnings, Trump took no action against the Nvidia CEO and even included him in his visit to China in May.

The report raises questions about the White House's handling of intelligence concerns involving one of the most important companies to US technological security, particularly against the backdrop of Washington's struggle with Beijing for control of the advanced semiconductor market.

Nvidia names Colette Kress interim CEO after Huang exit

On Thursday, Nvidia announced that Huang was stepping down as CEO following revelations about his relationship with the woman suspected of espionage, as well as reports of another alleged relationship with a senior company employee.

According to reports published in recent days, the second woman was Kimberly Powell, Nvidia's vice president of healthcare.

The company announced that Chief Financial Officer Colette Kress would serve as interim CEO.

The woman suspected of espionage worked for a company operating in the data center industry. US authorities are also examining suspicions involving the transfer of advanced chips to China in violation of American export restrictions.

However, no public evidence has emerged proving that Huang himself transferred classified information to the Chinese government.

Trump praises Huang, floats Tim Cook to lead Nvidia

Trump's support for Huang continued even after the scandal broke.

On Monday, the president said he had spoken with the Nvidia CEO and specifically asked whether he knew that the woman with whom he had been involved was suspected of being a spy.

"He told me he had no idea she was a spy, and I really believe him," Trump declared.

The president added at the time that Huang was a respected individual and that he believed he would be able to overcome the crisis.

Trump continued praising Huang in an interview on Thursday with American commentator Stephen A. Smith, following the Nvidia executive's resignation.

"He's a tremendous talent," the president said, adding that he had spoken with Huang the previous day. "He's going through hell. What hurts him most is what he did to his wife and family."

Trump added that if the woman was indeed a spy, Huang's departure was justified, but if she was not, the situation might be viewed differently.

At the same time, the president suggested former Apple CEO Tim Cook as a possible candidate to lead Nvidia.

Congress demands probe into Huang, Nvidia chip exports

The affair has also prompted reactions in Congress.

Lawmakers from both parties are demanding an investigation into whether Huang's relationships exposed sensitive information about the American artificial intelligence industry and whether decisions were made that allowed companies linked to China to obtain chips subject to export restrictions.

Democratic senators have also called on the administration to preserve documents and correspondence relating to Huang's connections with senior administration officials and US chip export policies toward China.

According to The New York Times, Huang's representative did not respond to a request for comment on the reported telephone conversation. Trump and the White House also did not respond to requests for comment.

The affair has now placed not only the conduct of one of the most powerful figures in the global technology industry under scrutiny, but also the US president's decision to continue offering him personal support after receiving warnings about suspected Chinese espionage.