Nvidia Board Launches Probe Into CEO Jensen Huang After Spy Allegations

Nvidia’s market value stands at nearly $4.5 trillion, yet the world’s second-largest publicly traded company is now facing a formal internal probe. The board of directors announced on Sunday that it is opening an independent investigation into founder and CEO Jensen Huang. The decision follows reports that Huang was the target of a foreign intelligence effort involving a Chinese businesswoman.

The scrutiny intensified after The New York Times and the Financial Times reported details of the situation. Those publications stated that Alice Huang, a Chinese citizen and executive at Megaspeed, had been recruited to spy for China’s top intelligence agency. U.S. intelligence agencies had placed her under surveillance. The two Huangs are not related. Alice Huang’s company was purchasing Nvidia’s advanced chips, which are heavily restricted for sale in China due to security concerns.

Nvidia stated that a committee of independent directors, assisted by outside counsel, will oversee the inquiry. The company said it prioritizes U.S. national and economic security. It noted that it has no reason to believe national security or company secrets were compromised. However, the board added that the investigation will examine all available information to determine the full scope of the relationship.

In a memo to employees shared with NBC News, Jensen Huang acknowledged a romantic relationship with Alice Huang. He wrote, “I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did.” He told his wife and family that an apology cannot undo his actions. To colleagues and shareholders, he said he is fully committed to leading the company without interruption.

Congressional pressure mounted before the board’s announcement. On Thursday, top House Republicans requested a briefing from Huang regarding Megaspeed. Rep. John Moolenaar, R-Mich., chairman of the House Select Committee on China, said the reports raise national security concerns regarding China’s access to sensitive U.S. technology. A letter to the company stated that Congress must determine the extent to which U.S. security has been placed at risk.

Secretary of State Marco Rubio addressed the situation in Florida on Sunday. He said he could not comment on the nature of the reports or the internal corporate matter. Nvidia declined to provide further details beyond its initial statement. The company noted that Huang meets thousands of customer executives annually, a standard practice for a CEO.

The investigation is scheduled to proceed with the assistance of independent legal counsel. The board will review all available information related to the foreign intelligence effort. Jensen Huang remains in his role as CEO. The company’s stock value reflects its position as a leader in the artificial intelligence sector, with a net worth for Huang of almost $160 billion.