Nvidia's board investigates whether CEO Jensen Huang was targeted by a foreign intelligence operation.
The probe follows reports linking Huang to Alice Huang, a former Megaspeed executive suspected of ties to Chinese intelligence.
The allegations put Nvidia's China business, US chip export controls and national security under scrutiny as Huang admits infidelity.
Nvidia has launched an independent investigation into whether its chief executive Jensen Huang was targeted by a foreign intelligence operation, following a media report alleging that he had a close relationship with a Chinese businesswoman suspected of passing information to Beijing. The development comes as Huang has admitted to being unfaithful to his wife, apologised to his family and accepted responsibility for his actions.
According to Reuters, Nvidia's board announced the investigation on Sunday after The New York Times reported last month that Huang had a relationship with Alice Huang, who is not related to him and was a former executive of Singapore-based company Megaspeed. Reuters also reported that US authorities had investigated Alice Huang and concluded that she was a Chinese intelligence asset. Separately, Megaspeed has faced scrutiny over suspicions that it helped Beijing gain access to advanced Nvidia chips restricted under US export controls.
Nvidia said Huang remained committed to leading the company without interruption and reiterated that its board had confidence in him and his leadership team.
Nvidia Board Orders Independent Investigation Into Intelligence Allegations
In a statement on Sunday, Nvidia said its board had initiated an independent investigation into reports that Huang had been the target of a foreign intelligence effort. A committee comprising independent directors will oversee the inquiry, assisted by independent external legal counsel.
The company said the board had no reason to believe that US national security or Nvidia's confidential information had been compromised. However, it added that the investigation would examine all available information relating to the allegations.
Huang has supported the review and committed to cooperating fully with the investigation, Nvidia said.
In late October, Huang told Bloomberg News that his relationship and interactions with Alice Huang were connected to Megaspeed and were "completely normal and not unusual".
US President Donald Trump said on Sunday that he had not spoken to Huang about the allegations but described him as a fine person.
"I hope everything's fine. He's done such an incredible job," Trump said.
Asked whether he believed he should have acted on intelligence findings when he was briefed about them, Trump said: "No, I don't think so. I think he's an honorable guy. I think he probably has an excuse for it. You have to hear it."
Reuters reported that The New York Times had said Trump was briefed about the intelligence findings roughly a year ago but chose not to act on the information.
US Secretary of State Marco Rubio declined to comment on Huang when questioned by reporters earlier on Sunday. China's foreign ministry did not immediately respond to a Reuters request for comment. Megaspeed also did not respond to a request for comment outside business hours.
Jensen Huang Apologises To Family And Nvidia Employees
In a message to Nvidia employees, Huang acknowledged that he had been unfaithful to his wife and said he took full responsibility for his actions.
"My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry," he said.
Addressing his colleagues, the board, business partners and shareholders, Huang acknowledged that he had fallen short of the responsibility he held towards them.
"My responsibility is to serve you and be worthy of your trust. I have fallen short of that responsibility. I am fully committed to NVIDIA and will work to earn back your confidence," he said.
Huang also reiterated his commitment to the company and US national security, saying: "I am committed to protecting Nvidia and supporting America's national security."
Investigation Adds To Pressure On Nvidia Shares Amid AI Spending Concerns
The board's investigation comes as Nvidia faces growing investor concerns over the sustainability of the artificial intelligence boom that has driven its rise to become one of the world's most valuable companies.
The chipmaker, valued at $4.5 trillion, has seen its shares surrender all their gains for the year amid a broader technology market sell-off triggered by concerns over the pace of AI spending.
Huang has been central to Nvidia's growth over more than three decades, with the company emerging as a dominant global supplier of artificial intelligence chips. Any uncertainty over his leadership could therefore affect investor confidence in the company's strategy.
"There is clearly risk that Jensen could be removed as CEO depending on the Board investigation and this will add risk to the stock as he is so important to the Nvidia story and strategy globally," said Dan Ives, partner and senior managing director at Yorkville Ives & Co.
"This is a black eye moment for Jensen and will spark multiple congressional inquiries at a minimum and will create an overhang on the stock," Ives said, adding that the developments would also increase scrutiny of Nvidia's chip sales to China.
Josh Gilbert, lead analyst at trading platform eToro, said Huang's role in every stage of Nvidia's growth meant that any uncertainty over his position would matter to shareholders.
"While the investigation is likely to dent sentiment, it won't alter anything long-term unless it leads to a change at the top, at which point it becomes a completely different ball game," Gilbert said.
US Lawmakers Seek Congressional Briefing Over China Chip Access
The allegations have also drawn attention from US lawmakers concerned about China's access to advanced American technology.
Top Republican lawmakers in the US House of Representatives had already called on Huang to brief Congress this month about The New York Times report.
In a letter dated November 4, the lawmakers said the report raised "significant national security concerns regarding (China's) access to sensitive US technology and information".
"It is vital that Congress determines the extent to which US national security has been placed at risk," they added.
The concerns come against the backdrop of US export controls introduced since 2022 to restrict China's access to advanced Nvidia chips and the equipment required to manufacture them.
The lawmakers' demand for a congressional briefing adds to pressure on Huang to address concerns over China's access to restricted US AI technology and the potential national security implications.
