Scrutiny turns to Jensen Huang relationship as Nvidia stock falls 5% over unrelated alleged Chinese spy link
Huang apologizes and pledges cooperation
In a Sunday press release, Jensen Huang apologized to his wife, children and others, acknowledging that he had been unfaithful. He said there was no excuse for his actions and expressed regret.
The Nvidia board said independent directors would lead an investigation, with help from outside counsel. The inquiry follows reports that Huang was targeted by what the board described as “a foreign intelligence effort.” Huang said he supports the investigation and will cooperate. Nvidia told the New York Times that he would remain CEO while it proceeds.
Report links executive to Megaspeed
A New York Times report last month identified Alice Huang, an executive at Singapore-based data centre company Megaspeed, as an alleged Chinese intelligence agent. The report said U.S. spy agencies determined she had shared information with the Chinese government and had developed a close relationship with Nvidia’s CEO.
Huang said his interactions with Alice Huang were connected to Megaspeed and were normal. The company said last December that it followed applicable export-control rules and maintained high legal and ethical standards.
Chip concerns draw government attention
Megaspeed drew U.S. government attention last year amid suspicions it was smuggling Nvidia chips to China. Such shipments, if confirmed, would bypass U.S. restrictions on exports of many Nvidia chips, imposed over national security concerns.
Singapore’s government also opened an investigation into whether Megaspeed had violated local laws. The report does not state that the suspected smuggling allegations have been proven.
Political ties and donations noted
Huang has called Nvidia’s exclusion from the Chinese market a “tremendous loss” and remains a supporter of President Donald Trump. The Washington Post reported last month that Nvidia donated $25 million toward construction of the White House ballroom.
Apple, Microsoft and Palantir were also reported to have contributed. Trump said he had not heard that Huang had done anything wrong and suggested Huang might have an explanation.
Key points
- Nvidia’s board is investigating reports involving CEO Jensen Huang and an alleged foreign intelligence effort.
- Huang admitted to infidelity, apologized, and said he would cooperate with the investigation.
- Megaspeed has faced scrutiny over suspected chip smuggling and a separate investigation in Singapore.
- Nvidia said Huang would continue as CEO during the inquiry.