Nvidia CEO Jensen Huang's affair with a China-linked businesswoman is raising national security alarms, and the Trump administration is openly shrugging it off.

• Huang admitted to an affair with Alice Wang, a Chinese citizen whose company bought billions in Nvidia chips and is suspected by US officials of being a Chinese intelligence asset.
• Her firm allegedly helped route banned high-end Nvidia chips to China through shell companies and Singapore-based data centers used by Chinese tech giants.
• Trump was warned over a year ago by his own State, Commerce, and Justice departments that Huang was compromised, but chose to stand by him anyway, saying he's "an honorable guy."
• Huang's closeness to Trump and Nvidia's outsized weight in the stock market mean regulators have strong incentives to look the other way.
• Separately, Wall Street voices are already floating a future government bailout for AI companies if the industry's debt-fueled buildout runs into trouble.

Outlook: Expect no real consequences for Huang or Nvidia near-term, while talk of an eventual AI-industry bailout keeps building in the background.