Nvidia's board said it is investigating reports that CEO Jensen Huang was the target of a foreign intelligence effort, after Huang acknowledged an affair with a business executive.
The New York Times reported that U.S. intelligence determined the executive was gathering information for Beijing. Nvidia's board says it has no reason to believe national security or company secrets were compromised.
Leading Nvidia is the privilege of my life.
Huang, 63, will stay on as CEO during the review and has pledged to cooperate. The story lands as Nvidia, the world's most valuable company, remains at the center of the AI race and U.S. export rules on chips.
Nvidia Opens an Investigation Into Its Own CEO
Nvidia's board of directors said on Sunday that it is opening an investigation into reports that CEO Jensen Huang was the target of a foreign intelligence effort. The statement came as the story spread quickly.
The announcement followed Huang telling the board that he had been intimate with a business executive. The New York Times reported that U.S. intelligence had concluded the woman was gathering information for Beijing.
In a letter to Nvidia employees that the Associated Press obtained, Huang said he was unfaithful to his wife and apologized to his family and his colleagues, adding that he takes full responsibility for what he did.
He called leading Nvidia the privilege of his life and said his duty is to serve employees and be worthy of their trust. In his words, he has fallen short of that duty, and he wrote that he regrets it very deeply today.
The board said it has no reason to believe national security or Nvidia's secrets were compromised, but that the inquiry will weigh all available information. It added that Huang supports the review and will cooperate.
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Who the Executive Is, According to The New York Times
The Times reported last month that U.S. intelligence agencies found Huang had built a close relationship with Alice Huang, a Chinese citizen and chip buyer. The paper said agencies determined she was passing information directly to Beijing.
The two are not related, the Times said, despite sharing a surname. She was once a television reporter in China before becoming a top executive at Megaspeed, a data center company based in Singapore.
Megaspeed has become one of Nvidia's biggest customers in Southeast Asia. According to the Times, it bought more than $4.8 billion worth of Nvidia chips over the past two years, which gives the reports added weight.
Huang's letter to employees did not name Alice Huang or address her reported ties to Beijing. It did refer to the national security concerns raised in news reports and said he'd cooperate fully with the board's investigation.
Those details come from press reporting. The board's investigation is meant to establish what actually happened and whether anything was put at risk.
Huang Stays on as CEO While the Review Runs
Huang, who is 63, will remain CEO during the investigation. Company spokesperson John Rizzo said in a statement that today's news will not slow Nvidia and that Huang is committed to leading it without interruption.
In his letter, Huang said he loves both his country and his company. He wrote that he is committed to protecting Nvidia and supporting America's national security, and that he welcomes the board's review.
The company's position is clear: it does not see a threat to operations. But the board chose to open a formal inquiry anyway, which shows how seriously directors are treating the reports about a foreign intelligence effort.
For investors and customers, the key question is whether the review turns up anything beyond the personal conduct Huang has admitted. The board said it would look at all available information, which leaves room for a broad inquiry.
The board's statement does not describe a timeline for the investigation. Until it reports back, the company is likely to face questions whenever its leadership appears in public.
Washington Reacts, Carefully
President Donald Trump said Sunday that he hadn't spoken to Huang about the matter and praised him, saying he hopes everything is fine and that Huang has done an incredible job.
Asked whether he wished he had acted when he was briefed about spying, Trump called Huang an honorable guy who probably has an excuse and has done an amazing job for the country.
Trump said he was open to bringing Huang along on his trip to Asia next week. Huang sits on the president's Council of Advisors on Science and Technology, which gives him a formal link to the administration.
Secretary of State Marco Rubio, speaking as he left for a G7 meeting in Paris, said he could not comment because of the nature of the matter. He added that it is an internal corporate issue at Nvidia.
The restrained response shows how sensitive the topic is. Nvidia sits at the center of U.S. technology policy, and any question about its leadership and China quickly becomes a political one.
Why This Matters for Nvidia and the AI Race
Nvidia is a central player in the global race to build artificial intelligence. Its chips power many of the data centers and computing systems used to train and run AI models.
Those advanced processors are also the focus of U.S. export restrictions designed to limit China's access to cutting-edge semiconductor technology. That is why reports of a link to Beijing draw so much attention.
Nvidia is the world's most valuable company and has regularly beaten Wall Street's earnings forecasts over the past three years, since its high-end chips became AI's preferred building blocks.
The Santa Clara, California, company reported quarterly profits of $59.69 billion in August. With numbers that large, any hint of leadership turmoil can ripple through markets and the technology sector.
For now, the facts remain limited. Huang has admitted being unfaithful, the board is investigating, and the reported intelligence claims are unproven. What the review finds will decide how much this matters.
Read more in our Business section for similar stories and expert analysis.
Benjamin Hayes
Business Journalist
Benjamin Hayes is a seasoned business journalist with a special focus on corporate finance, global markets, and entrepreneurial trends. He has covered major startups, tech investments, and economic shifts in multiple sectors.
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