Nvidia's board has launched an independent investigation into whether CEO Jensen Huang was targeted by a foreign intelligence effort. This probe follows a media report alleging Huang had a close relationship with a Chinese businesswoman who allegedly passed information to Beijing. The investigation will be overseen by a committee of independent directors, assisted by outside counsel.
Huang has admitted to being unfaithful to his wife, stating he takes "full responsibility" for his actions. In a message to employees, he expressed deep regret, saying his actions hurt his family and that he is committed to protecting Nvidia and supporting America's national security. The developments may pressure Nvidia's stock, which has already fallen sharply amid concerns about the sustainability of the AI boom.
The New York Times reported last month that Huang had a relationship with Alice Huang, an unrelated former executive of Singapore-based company Megaspeed. US authorities investigated and concluded that Alice Huang was a Chinese intelligence asset. Megaspeed, which buys AI chips from Nvidia, has been scrutinized over suspicions it helped Beijing gain access to advanced AI chips barred from shipment to China.
The investigation adds to pressure on Nvidia at a time when investors are pulling back amid uncertainty over the AI market's sustainability. Nvidia's shares have given up all their gains this year amid a broader tech market rout. Huang, who has led Nvidia for over three decades, is central to its rise as a dominant supplier of AI chips.
Analysts say the investigation and Huang's personal scandal may raise questions about his future at the helm of Nvidia. Dan Ives, a partner at Yorkville Ives & Co, said there is a risk that Huang could be removed as CEO, which would add risk to the stock. The news is likely to increase scrutiny about selling chips to China.
Top Republican lawmakers in the US House of Representatives have called on Huang to brief Congress about the New York Times report. The report raises "significant national security concerns" regarding China's access to sensitive US technology and information. US export controls since 2022 have sought to restrict China's access to advanced Nvidia chips.
US President Donald Trump said he had not spoken to Huang about the allegations but called him a "fine person". Trump added that he hopes everything is fine and that Huang has done an "incredible job". The Chinese foreign ministry did not immediately respond to a request for comment, while Megaspeed did not respond outside business hours.
Key points
- Nvidia investigates alleged foreign spying on CEO Jensen Huang.
- Huang admits to being unfaithful to his wife amid personal scandal.
- Investigation adds to pressure on Nvidia amid AI market uncertainty.
