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

Nvidia's board of directors has opened an independent investigation into CEO Jensen Huang's relationship with Alice Huang, a businesswoman whom U.S. intelligence agencies believe is a Chinese spy. The board retained Joon H. Kim, the former acting U.S. Attorney of the Southern District of New York, and his firm Wachtell, Lipton, Rosen & Katz to conduct what it described as “a thorough and independent investigation.”

Investigation and company statement

The board said a committee of independent directors, assisted by outside independent counsel, will oversee the investigation. In a statement, the board said: “While the Board has no reason to believe that either national security or NVIDIA secrets were compromised, the Board’s inquiry will examine all available information.”

Nvidia said the investigation follows recent reporting by The New York Times and the Financial Times about Huang’s relationship with Alice Huang, a Chinese businesswoman whose Singapore-based company was buying Nvidia’s advanced chips. The two are not related.

Huang's admission

In a memo 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.” He also wrote: “To my wife and family: I love you. I know an apology cannot undo what I have done. I hope our family will heal and that, over time, I can earn back your trust.”

Huang added: “Nvidia’s Board of Directors has initiated an independent investigation. I support the investigation and will cooperate fully. I love our country and our company. I am committed to protecting Nvidia and supporting America’s national security. I am proud and grateful to be an American.”

An Nvidia spokesperson told NBC News that Huang is “committed to continuing to lead NVIDIA as CEO without interruption.”

Market and political reaction

The Guardian reported that around $430bn was wiped off Nvidia’s value since the spying allegations emerged, with the company’s value falling to $4.07tn from $4.50tn before the story broke. Nvidia shares fell by almost 5.5% on one day, adding to a 4.27% drop the previous day.

Chinese Foreign Ministry Spokesperson Guo Jiakun said: “the so-called Chinese spy allegation is unsubstantiated. It is nothing but smears against China.”

President Donald Trump said he thinks Huang is a “fine person” who should remain CEO of Nvidia, adding: “I think he’s an honorable guy.” Secretary of State Marco Rubio said he could not comment because of the nature of the matter and because it is an internal corporate matter.

Why it matters

Nvidia is one of the world’s largest makers of AI chips, and the U.S. restricts exports of its most advanced AI chips to China. Megaspeed, the company Alice Huang is affiliated with, has been accused of helping restricted Chinese companies acquire Nvidia AI chips. The investigation comes as Nvidia reports third-quarter earnings on Nov. 17 and prepares to hold a major conference in Washington, D.C., at the end of the month.

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Sources

• theguardian.com: Nvidia’s value tumbles by $430bn since spy allegations, as major US law firm hired to investigate claims – business live
• 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
• finance.yahoo.com: Nvidia's board launches investigation into CEO Jensen Huang's affair with an alleged Chinese spy
• english.elpais.com: Nvidia launches investigation into its CEO’s relationship with an alleged Chinese spy | U.S. | EL PAÍS English

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