Nvidia Launches Investigation Into CEO Jensen Huang Spy Reports
Nvidia's board has opened an independent investigation into reports that CEO Jensen Huang was targeted by a foreign intelligence effort. Huang separately admitted being unfaithful to his wife. The board says it has no reason to believe national security or company secrets were compromised.
Nvidia launches investigation into reports that CEO Jensen Huang was the target of a foreign intelligence effort, the company's board of directors said in a statement. Huang separately admitted in an email to employees that he had been unfaithful to his wife.
Nvidia is worth about $4.5 trillion. It supplies chips to leading AI developers including OpenAI and Meta.
What the board said
A committee of independent directors, assisted by outside independent counsel, will oversee the inquiry. The board said it has "no reason to believe that either national security or NVIDIA secrets were compromised."
It added that the inquiry "will examine all available information." Nvidia also said Huang remains committed to continuing to lead the company.
Huang's statement
Huang said he supports the investigation and will cooperate fully. "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 wrote.
He said he took "full responsibility" and had fallen short of his duties to Nvidia's employees, board and shareholders. "I love our country and our company," he added.
The reported spy link
Reports last month said US intelligence officials believed Chinese businesswoman Alice Huang, who had a close relationship with Jensen Huang, was working for Beijing. She is not related to him and is also known as Huang Le.
She is a former leader at Megaspeed, a Singapore-based data center firm and an Nvidia chip customer. Megaspeed has said its current leadership took the allegations seriously and had appointed external legal advisers to conduct an internal investigation.
According to unnamed sources cited in those reports, US agencies had been monitoring her. Surveillance reportedly revealed communications with an American citizen, later identified as Jensen Huang through a process known as "unmasking."
It is unclear what information she allegedly passed to Beijing, how valuable it was, or when she began. Alice Huang did not respond to a request for comment. China has rejected the allegations as "groundless speculation."
Congress and investors
Last week, three House Republican committee leaders wrote to Huang asking him to appear later this month. They want to discuss Nvidia's "security protocols against foreign adversary espionage."
Their letter said that "PRC infiltration and access to cutting-edge US technology is core to the investigative work of our three committees." The US government has banned sales of Nvidia's advanced AI chips to China, though the company has lobbied to keep offering them.
Dan Ives, a partner and senior managing director at Yorkville Ives, wrote in a note to investors that the probe is a "black eye" for Huang and will likely spark multiple congressional investigations. He said he expects Huang to continue as CEO with no interruption in the near term.
Ives also wrote there is "clearly risk that Jensen could be removed as CEO depending on the Board investigation." He said that would add risk to the stock and increase scrutiny of chip sales to China.
