Nvidia's board has opened an independent investigation after reports that CEO Jensen Huang was the target of a foreign intelligence effort. Huang apologized to staff on Sunday for being unfaithful to his wife, and the company said it has no reason to believe national security was compromised.
Nvidia CEO Jensen Huang apologized to employees in a note on Sunday, the same day the company's board of directors announced an independent investigation into whether he was the target of a foreign intelligence effort. According to Business Insider, Huang wrote in the note: "I was unfaithful to my wife."
Reports tie the affair to a suspected Chinese asset
The New York Times reported last month that US officials believe Alice Huang, a former executive at a data center company in Singapore, was a Chinese intelligence asset. According to the outlet, surveillance showed she had developed a relationship with the Nvidia founder.
The Financial Times reported that American officials wrote a memo this year, based on US intelligence, saying Huang was romantically involved with an executive at Megaspeed, a Singapore-based Nvidia customer. Nvidia had previously dismissed suggestions of an improper relationship, saying the interactions were nothing unusual or unexpected when dealing with a customer. The FT added that the US government had already been investigating Megaspeed over concerns that it was smuggling Nvidia chips into China.
Board says no sign of compromise so far
Nvidia said a committee of independent directors, helped by external lawyers, would oversee the inquiry. The board said it has no reason to believe that either national security or Nvidia secrets were compromised, but that the inquiry will examine all available information.
Huang said in his note that he supports the investigation and will cooperate fully.
Why the CEO matters to Nvidia
The FT wrote that more than most technology groups, Nvidia's success is tethered to that of its CEO. It said Huang has credited a flat organizational structure for the speed at which the company operates. The company's market valuation rose from roughly $1tn in 2023 to $4.5tn today, the FT said.
Sources: Business Insider, Financial Times
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