Nvidia's board of directors announced Sunday that it is launching an independent investigation into CEO Jensen Huang following reports that he was the target of a Chinese intelligence operation. The inquiry will be conducted by a committee of independent directors working with outside legal counsel to examine Huang's relationship with Alice Huang, a former executive at Singapore-based chip company Megaspeed.
Reports from Bloomberg and The New York Times indicated that Huang had developed a close relationship with Alice Huang, who was allegedly recruited by China’s Ministry of State Security to spy on the company. A memo circulated among U.S. policymakers earlier this year claimed the executive was feeding information directly back to Beijing. In a message to the company, Huang admitted to the romantic nature of the relationship, stating, “I owe my family and all of you an apology.”
The board stated it has "no reason to believe" that national security or company secrets were compromised during the relationship. Despite the investigation, the board expressed continued confidence in Huang and his leadership team, noting that the CEO has committed to cooperating fully with the review.
Megaspeed is a customer of Nvidia and is currently the subject of a Commerce Department investigation regarding the potential smuggling of AI chips to China. The investigation into Huang comes amid heightened scrutiny of the AI industry, as the United States and China compete for technological supremacy in semiconductor manufacturing. The board noted that prioritizing U.S. national and economic security remains paramount to the interests of the company and its shareholders.
