Nvidia Launches Independent Probe After CEO Targeted in Chinese Spy Case

Nvidia’s board of directors announced on Sunday that it is opening an independent investigation into the conduct of CEO Jensen Huang. The move follows reports that Huang was the target of a foreign intelligence operation involving a Chinese businesswoman.

The probe is led by a committee of independent directors with the assistance of outside counsel. The board stated that it prioritizes U.S. national and economic security, which it described as paramount to the interests of Nvidia and its shareholders.

The investigation stems from reports by The New York Times and the Financial Times. These publications stated that U.S. intelligence agencies had been surveilling Alice Huang, a Chinese citizen. Her Singapore-based company, Megaspeed, purchased advanced Nvidia chips. The agencies reportedly found that she had been recruited by China’s top intelligence agency to spy.

Jensen Huang, who is 63, is not related to Alice Huang. In a memo to Nvidia employees shared with NBC News, Huang acknowledged a romantic relationship with her. He wrote that he was unfaithful to his wife and that his actions hurt her and their children. He stated there was no excuse for what he did.

Huang previously characterized his interactions with Alice Huang as business-related. He told employees that their relationship was tied to Megaspeed and was completely normal. In his Sunday memo, he admitted that he had fallen short of his responsibility to serve the company and its stakeholders.

The company said it has no reason to believe that national security or Nvidia secrets were compromised. However, the board will examine all available information as part of the inquiry. A spokesperson for Nvidia told NBC News that the news will not slow the company and that Huang is committed to continuing to lead Nvidia as CEO without interruption.

Nvidia is the world’s second-largest publicly traded company, with a market value of nearly $4.5 trillion as of Friday. The company’s value has risen more than 500% over the last five years. Huang’s personal net worth has grown from approximately $25 billion in early 2022 to almost $160 billion, making him the tenth-richest person in the world according to the Bloomberg Billionaires Index.

The relationship between the two Huangs has drawn attention because of restrictions on Nvidia’s top-tier chips. These products are largely barred from sale in China due to national security concerns. China has set a 2030 deadline for its AI systems to surpass American capabilities, a goal set by President Xi Jinping.

Concerns within the U.S. government rose as high as Secretary of State Marco Rubio. Speaking in Florida on Sunday, Rubio said he could not comment on the nature of the intelligence effort or the internal corporate matter. He noted the sensitivity of the situation.

Congressional scrutiny had already begun before the board’s announcement. On Thursday, top House Republicans requested a briefing from Huang. Representative John Moolenaar, R-Mich., chairman of the House Select Committee on China, said the reports raise significant national security concerns regarding China’s access to sensitive U.S. technology. A letter to Nvidia stated it is vital that Congress determines the extent to which U.S. national security has been placed at risk.