Nvidia board opens independent investigation into CEO Jensen Huang's relationship with alleged Chinese spy

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.

The announcement followed recent reporting by The New York Times and the Financial Times about Huang's relationship with Alice Huang, a Chinese businesswoman who the newspapers reported had been recruited to spy for China. The two are not related.

A person familiar with the matter told NBC News that U.S. intelligence agencies had determined that Alice Huang was a Chinese spy and had a relationship with Nvidia's Jensen Huang. CNBC reported that U.S. intelligence agencies have expressed concerns that Alice Huang, who is affiliated with a cloud company and an Nvidia customer called Megaspeed, has been passing information to Beijing.

"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.

"A committee of independent directors, assisted by outside independent counsel, will oversee the investigation. The Board prioritizes U.S. national and economic security, which is paramount to the interests of NVIDIA and its shareholders."

The company 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."

In a memo to Nvidia employees that the company shared with NBC News, Huang said: "I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did."

Huang also wrote in the email: "I am deeply sorry." and "To my colleagues at Nvidia, including those I have worked alongside for decades, and to our board, partners, and shareholders around the world: you deserve better from me. Leading Nvidia is the privilege of my life. My responsibility is to serve you and be worthy of your trust. I have fallen short of that responsibility. I am fully committed to Nvidia and will work to earn back your confidence."

A spokesperson for Nvidia told NBC News that "today's news will not slow" the company and that Huang is "committed to continuing to lead NVIDIA as CEO without interruption."

Nvidia shares fell more than 4%, erasing almost $200 billion in value. Yahoo Finance reported that Nvidia stock fell 5% before the bell on Monday. The broader stock market, as tracked by the S&P 500 and Nasdaq, were sharply higher for the day.

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

Speaking Sunday to reporters in Florida shortly after Nvidia's announcement, Secretary of State Marco Rubio said, "I just can't comment because of the nature of it, and I also can't comment on an internal corporate matter that's going on with Nvidia."

Trump gave Huang his complete support, telling reporters that he thinks Huang is a "fine person" who should remain CEO of Nvidia. "I think he's an honorable guy," the president said. "He's done an amazing job for our country," Trump added.

Three House Republican committee chairs sent a letter to Huang on Wednesday asking him to sit for a closed-door briefing with lawmakers on Nov. 18. On Thursday, top House Republicans requested a briefing from Huang about the reports.

"Recent reports raise significant national security concerns regarding the PRC's access to sensitive U.S. technology and information," said Rep. John Moolenaar, R-Mich., who is also chairman of the House Select Committee on China. "PRC" is shorthand for the People's Republic of China.

"It is vital that Congress determines the extent to which U.S. national security has been placed at risk," a letter to Nvidia read.

The U.S. restricts exports of Nvidia's most advanced AI chips to China, though it has approved exports of certain older, slower models. Megaspeed, which Ms. Huang is affiliated with, has been accused of helping restricted Chinese companies acquire Nvidia AI chips. Nvidia representatives previously said that Megaspeed had already been investigated for evading export controls.

Sources

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