Nvidia opens investigation after reports CEO Jensen Huang was targeted by Chinese intelligence

Nvidia's board of directors initiated an independent inquiry after media reports alleged that co-founder and chief executive Jensen Huang was the target of an intelligence effort by China. According to CBS News, the allegations center on a Chinese business executive named Alice Huang, whom U.S. intelligence agencies believe was an asset of China's Ministry of State Security. The New York Times reported that U.S. authorities were investigating Alice Huang, a former executive of the Singapore-based company Megaspeed. Megaspeed is a major customer of Nvidia that buys AI chips and bought more than $4.8 billion worth of chips over the past two years, as reported by CBS News. Al Jazeera and other outlets noted that Nvidia stock fell about 3% in after-hours and perpetual futures trade following the news.

In a message to Nvidia employees on Sunday, Jensen Huang admitted to being "unfaithful" to his wife and apologized for hurting his family, though he did not name the woman involved. "There is no excuse for what I did. I am deeply sorry," he stated according to CBS News. Nvidia's board said a committee of independent directors, assisted by outside independent counsel, will oversee the investigation. The board stated it had no reason to believe that national security or company secrets were compromised, adding, "The Board prioritizes U.S. national and economic security, which is paramount to the interests of NVIDIA and its shareholders." John Rizzo, a spokesperson for Nvidia, told CBS News, "We trust that if we were the target of a genuine threat, the U.S. government would have notified us."

A company spokesperson told CBS News that Jensen Huang "fully supports the review" and remains committed to continuing to lead the company. In his statement, Huang said he had fallen short of his responsibilities to employees, the board, and shareholders, but that he is "fully committed to NVIDIA" and will work to earn back their trust. "Regarding the national security concerns raised in news reports, NVIDIA's Board of Directors has initiated an independent investigation," Huang said, adding, "I support the investigation and will cooperate fully." He also stated, "I love our country and our company. I am committed to protecting NVIDIA and supporting America's national security. I am proud and grateful to be an American."

Chinese Ministry of Foreign Affairs spokesperson Guo Jiakun told reporters that, "The so-called Chinese spy narrative is entirely baseless and constitutes slander and smear." When asked about the report on Sunday, Secretary of State Marco Rubio declined to comment, calling it an "internal corporate matter." Meanwhile, Al Jazeera reported that Asian stock markets climbed following an earlier tech rout, while futures tied to the Nasdaq 100 were down 0.24 percent amid the Nvidia investigation announcement.