Nvidia board opens independent investigation into CEO Jensen Huang over alleged Chinese spy relationship

Investigation announced

Nvidia's board of directors said Sunday that it is opening an independent investigation after CEO Jensen Huang was targeted by a foreign intelligence effort. A committee of independent directors, assisted by outside independent counsel, will oversee the investigation.

"The NVIDIA Board 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," the company said in a statement.

The board added that while it "has no reason to believe that either national security or NVIDIA secrets were compromised, the Board's inquiry will examine all available information."

Huang's admission

Jensen Huang admitted to having a romantic relationship with a woman outside of his marriage. In a message to Nvidia employees, Huang wrote: "I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry."

The woman, Alice Huang, is an executive at a Singaporean company Megaspeed, which has been a customer of Nvidia. The two are not related. U.S. intelligence agencies determined that Alice Huang was a Chinese spy and had a relationship with Jensen Huang, according to reporting by The New York Times and the Financial Times and a person familiar with the matter cited by NBC News.

Huang previously denied an inappropriate relationship with Alice Huang in an interview with Bloomberg late last month, and claimed she was no longer with Megaspeed. "Our relationship, our interactions, have been related to Megaspeed, and it was all completely normal and not unusual," said Huang.

Government and market response

The FBI is also conducting its own probe. President Donald Trump said the FBI is investigating Huang's affair and called Huang an "honourable guy" who had "done an amazing job for our country." Trump said he would be open to bringing Huang with him on his trip to China for the APEC summit.

Chinese Foreign Ministry Spokesperson Guo Jiakun said Monday that "the so-called Chinese spy allegation is unsubstantiated. It is nothing but smears against China."

Nvidia shares fell more than 4%, erasing almost $200 billion in value, according to NBC News. The Guardian reported shares closed down 4.3%, reducing Nvidia's market value by approximately $190 billion.

Why it matters

Nvidia is one of the world's largest makers of AI chips, which are essential for accelerating AI development. The U.S. restricts exports of Nvidia's most advanced AI chips to China due to national security concerns. Megaspeed has been accused of helping restricted Chinese companies acquire Nvidia AI chips, and both the U.S. and Singapore have investigated Megaspeed over suspicions that it was smuggling Nvidia chips to China. A shareholder lawsuit filed in federal court in California accuses Nvidia and Huang of misleading shareholders in connection with the alleged affair.

Sources

• bbc.com: Nvidia hires major New York law firm to investigate Huang affair
• mashable.com: Nvidia CEO Jensen Huang admits affair with alleged Chinese spy | Mashable
• nbcnews.com: Nvidia opens investigation after CEO Jensen Huang’s affair with alleged Chinese spy
• cnbc.com: Nvidia investigates CEO Jensen Huang's relationship with alleged Chinese spy
• techcrunch.com: Nvidia CEO Jensen Huang's affair with alleged Chinese spy: a timeline | TechCrunch
• theguardian.com: Nvidia and Jensen Huang sued in US over affair with alleged Chinese spy | Nvidia | 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.