Nvidia board opens independent investigation into CEO Jensen Huang

Nvidia's board said on Sunday it "is initiating an independent investigation in light of recent reporting that founder and CEO Jensen Huang has been the target of a foreign intelligence effort," according to The Guardian. The board said it has "no reason to believe" that either US national security or Nvidia secrets were compromised, and that Huang would remain in charge while cooperating with the investigation.

Investigation and government probes

The New York Times reported in October that Donald Trump had been briefed last year on intelligence that Huang had a close relationship with a Chinese businesswoman who passed information to Beijing, according to The Guardian. The Times also reported that a memo drafted by US secretary of state Marco Rubio circulated among top policymakers in the Trump administration last spring, citing intelligence that the businesswoman was a spy for China's ministry of state security.

The US Department of Justice has opened its own probe, and the Justice Department's National Security Division is investigating whether Megaspeed violated export control laws in an inquiry that will also include scrutiny of Alice Huang, according to a person familiar with the matter cited by AP. Last year, Megaspeed faced scrutiny from the US Commerce Department over its alleged skirting of US export laws and routing of a large amount of advanced Nvidia chips to Chinese users. The company denied those allegations.

Statements from Trump and Huang

Speaking to reporters, Trump said: "I think he's an honorable guy. I think he probably has an excuse for it," according to The Guardian. Trump also said: "I think he'll be in good shape," adding that "he said he had absolutely no idea that the person in question was a spy," according to AP.

Axios reported on Sunday, citing a draft email by Huang to employees, that Huang admitted to having a romantic relationship with a suspected Chinese spy and took full responsibility for his actions. "I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did," Huang said in the draft email also seen by Reuters, according to The Guardian.

Beijing has said the "Chinese spy allegation is unsubstantiated" and called it "nothing but smears," according to AP.

Why it matters

Nvidia's powerful chips serve as a cornerstone of the AI boom, placing Jensen Huang into one of the most influential leadership positions in the industry, according to The Guardian. The Trump administration has imposed restrictions on exports of advanced AI chips to China as a matter of national security. Megaspeed's Alice Huang was suspected to have been helping the government get around those restrictions, according to The Guardian.

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Sources

• apnews.com: Nvidia CEO's affair could have major effects on US-China AI race | AP News
• theguardian.com: Nvidia opens investigation after report CEO Jensen Huang was target of foreign intelligence | US news | The Guardian

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.