Nvidia has opened an independent investigation into its founder and CEO, Jensen Huang. The company said on Sunday that a committee of independent directors, assisted by outside counsel, will examine reports that Huang "has been the target of a foreign intelligence effort". Huang will keep leading the company during the probe, according to Al Jazeera.
The board said it had no reason to believe that US national security or Nvidia secrets were compromised. It said it still has confidence in Huang and his team. Huang fully supports the review and will cooperate, the company added.
In a message to employees, Huang admitted to an extramarital affair. "I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did," he said, according to Reuters. He said he took "full responsibility" and would work to earn back the trust of staff, partners and shareholders. In late October, he had told Bloomberg News that his dealings with the woman were linked to Megaspeed and were "completely normal".
The case began with an October 29 report in The New York Times. It said Alice Huang, also known as Huang Le, sought close ties with the CEO. She is an executive at Megaspeed, a Singapore-based datacentre firm, and is not related to him. US officials concluded she was a Chinese intelligence asset passing commercial information to Beijing, the Times reported, citing unnamed sources. She had earlier been suspected of helping smuggle Nvidia chips to China. Megaspeed bought some $4.8 billion in equipment from Nvidia, the Times said. The Chinese Embassy in Washington has denied the spying allegations, Al Jazeera reported.
The Times also reported that President Donald Trump was briefed on the intelligence about a year ago and did not act. On Sunday, Trump defended Huang. "I think he's an honorable guy. I think he probably has an excuse for it," he said. He added that he would "certainly take him" on his upcoming Asia trip. Secretary of State Marco Rubio declined to comment.
Lawmakers sounded more worried. Republicans John Moolenaar, Brian Mast and Rick Crawford have asked Huang to brief House committees. Al Jazeera put the date at November 18. Democratic Senator Elizabeth Warren said Huang and the board "owe Congress answers".
The probe adds pressure on a stock already hit by a wider tech sell-off. Analyst Dan Ives of Yorkville Ives & Co told Reuters there is "clearly risk" that Huang could be removed as CEO, depending on what the investigation finds.