Nvidia board probes foreign intel targeting of CEO Huang as he admits affair
Nvidia's board is investigating whether CEO Jensen Huang was targeted by foreign intelligence after reports of his relationship with a Chinese businesswoman. Huang admitted to an affair. The probe adds pressure on the chipmaker amid AI market uncertainty and falling shares.
Nvidia said on Sunday its board was probing whether CEO Jensen Huang had been the target of a foreign intelligence effort, after a media report alleged he had a close relationship with a Chinese businesswoman who passed information to Beijing. Nvidia's shares fell 3.7 per cent in US after-hours trading.
Huang said in a message to employees that he had been unfaithful to his wife and took 'full responsibility' for his actions, while Nvidia said the CEO was committed to continuing to lead the company without interruption. The developments are likely to pressure the chipmaker's stock, which has already fallen sharply amid worries about the AI boom's sustainability, and may also raise questions about Huang's future at the helm of the company he co-founded, analysts said.
The New York Times reported last month that Huang had a relationship with Alice Huang, an unrelated former executive of Singapore-based company Megaspeed, who US authorities investigated and concluded was a Chinese intelligence asset. US authorities have scrutinized Megaspeed, which buys AI chips from Nvidia, over suspicions it helped Beijing gain access to advanced AI chips that are barred from shipment to China.
'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 on Sunday 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.
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.'
Dan Ives, partner and senior managing director at Yorkville Ives & Co, said: 'There is clearly risk that Jensen could be removed as CEO depending on the Board investigation and this will add risk to the stock as he is so important to the Nvidia story and strategy globally.' Huang admitted to having been unfaithful to his wife, saying: 'My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry.'