China has rejected allegations that a business executive linked to Nvidia CEO Jensen Huang was gathering intelligence for Beijing, calling the claims “groundless” and a smear campaign against China. The controversy follows Huang's admission to Nvidia's board about an extramarital relationship with the executive. Nvidia is reportedly preparing an internal investigation as Huang also faces scrutiny over the company's advanced AI chip sales to China amid US technology restrictions. Chinese state media has questioned the timing of the allegations.