Nvidia Launches Investigation Into CEO's Alleged Foreign Intelligence Targeting

Nvidia on Sunday, November 8, said it has launched an investigation into whether CEO Jensen Huang was the target of a foreign intelligence effort, following the billionaire’s admission of an extramarital affair with a Chinese businesswoman who reportedly passed information to Beijing. In an email to Nvidia employees, Huang said that he had been unfaithful to his wife and took “full responsibility” for his actions. The US-based chip giant said that Huang was committed to continuing to lead the company without interruption. Huang had a relationship with Alice Huang, an unrelated former ⁠executive of Megaspeed, who US authorities investigated and concluded was a Chinese intelligence asset, The New York Times first reported last month. Megaspeed is one of Nvidia’s several AI chip buyers. The Singapore-based ​company, however, has come under scrutiny by US authorities over suspicions it helped Beijing gain access to advanced AI chips that are barred from shipment to China. The scandal involving Jensen Huang has raised questions about his future at the helm of the company he co-founded. It comes at a time when the chipmaker’s stock has already fallen sharply amid investor worries and uncertainties over the sustainability of the booming ⁠AI market that made Nvidia one of the world’s ⁠most valuable companies. Huang has led Nvidia for more than three decades, and has been ⁠central to its rise to become a dominant supplier of ‌AI chips. When questioned about his relationship and interactions with Alice Huang in late October, Huang had said that they were related to Megaspeed and were “completely normal and not unusual,” according to a report by Bloomberg News. “My actions hurt her [his wife] and our children. There is no excuse ​for what I did. I ​am deeply sorry,” he wrote in Sunday’s email. The chief executive further said that he was “committed to protecting Nvidia and supporting America’s national security.” “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,” Huang said in the email addressed to colleagues, board, partners, and shareholders. “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. A committee of independent directors, assisted by outside independent counsel, will oversee the investigation,” Nvidia said. The company said that while its board had no reason to believe that either US national security or ​Nvidia secrets ​were compromised, its inquiry would examine all available information. Emphasising its confidence in the CEO and his leadership team, Nvidia’s board said that Huang fully supports the review and has committed to cooperating with it. Meanwhile, US President Donald Trump said on Sunday he had not spoken to Huang about the allegations, but called him a fine person. “I hope everything’s fine. He’s done such an incredible job,” he added. When ‌asked if he believed he should have acted on intelligence when he was briefed about it, Trump said: “No, I don’t think so. I think he’s an honorable guy. I think he probably has an excuse for it. You have to hear it.” Trump was briefed about the intelligence findings roughly a year ago and chose not to do anything with the information, according to NYT . ( With inputs from Reuters)