Nvidia announced on Sunday that its board of directors is conducting an independent investigation to determine whether CEO Jensen Huang was the target of a foreign intelligence effort. The inquiry comes after media reports alleged that Huang maintained a close relationship with a Chinese businesswoman who passed information to Beijing.
In a message to employees, Huang acknowledged that he had been unfaithful to his wife and accepted full responsibility for his actions. The company stated that Huang remains committed to leading the chipmaker without interruption during the review process.
The New York Times reported last month that Huang had a relationship with Alice Huang, an unrelated former executive at Megaspeed, a Singapore-based company. US authorities investigated Megaspeed and concluded that Alice Huang was a Chinese intelligence asset. Officials scrutinized the firm for suspected efforts to help Beijing gain access to advanced AI chips that are restricted from shipment to China.
Nvidia stated that while the board has no reason to believe US national security or company secrets have been compromised, the inquiry will examine all available information. A committee of independent directors, assisted by outside counsel, will oversee the process. The company expressed confidence in Huang and his leadership team, noting that the CEO fully supports the review.
US President Donald Trump said he had not spoken to Huang about the allegations but described him as a fine person who has done an incredible job for the country. When asked if he believed he should have acted on the intelligence when briefed about it a year ago, Trump said he did not think so, calling Huang an honorable guy who likely has an excuse.
The news is expected to pressure Nvidia's stock, which has already fallen sharply due to concerns about the sustainability of the AI boom. Analysts suggest the investigation may also raise questions about Huang's future at the company he co-founded. Dan Ives of Yorkville Ives & Co. noted that the situation creates risk for the stock and could spark congressional inquiries.
Huang stated on Sunday that he is committed to protecting Nvidia and supporting America's national security. He addressed his colleagues and shareholders, saying his actions hurt his wife and children and that he is deeply sorry. He added that he is fully committed to Nvidia and will work to earn back the confidence of its stakeholders.
In late October, Huang had told Bloomberg News that his interactions with Alice Huang were related to Megaspeed and were completely normal. Top Republican lawmakers in the US House of Representatives have already called for Huang to brief Congress on the matter, citing significant national security concerns regarding China's access to sensitive US technology.
Nvidia has a substantial presence in Israel, where it operates seven R&D centers and employs over 5,000 workers. These facilities include sites in Yokne'am, Tel Aviv, Jerusalem, Ra'anana, and Beersheba. The company is also planning an additional site in Kiryat Tivon.
Josh Gilbert, an analyst at eToro, observed that Huang's influence is central to the company's rise. He suggested that while the investigation may dent short-term sentiment, it would not alter long-term outcomes unless it leads to a change in leadership at the top.
