Nvidia CEO faces scrutiny amid espionage allegations

Nvidia’s stock price fell by 5% around 9:00 GMT on the Tradegate trading platform.

Huang has admitted to an extramarital affair with a woman named Alice Huang, who has no familial relation to him. An independent investigation has been launched by Nvidia’s board of directors.

The allegations surfaced in late October in a New York Times report, alleging that Alice Huang, also known as Huang Le, a Chinese employee of Megaspeed, was suspected of acting as an intelligence agent for Beijing and developing a close relationship with Huang, who is 63 years old.

Megaspeed, based in Singapore, is suspected of diverting advanced Nvidia AI chips to China, according to the report, citing anonymous sources close to the investigation.

In a statement on Sunday, Nvidia’s board of directors acknowledged reports of “foreign intelligence service efforts” targeting its founder and CEO, without specifying the origin or nature of the efforts. An independent committee of directors, assisted by external legal counsel, will oversee the investigation.

The board expressed confidence in Huang and his leadership team, stating that Huang “fully supports this review and has committed to cooperate.” While the board stated it has no reason to believe national security or Nvidia secrets were compromised, the investigation will examine all available information.

Huang confirmed his support for the investigation in a message to employees, acknowledging the affair and expressing regret. He reaffirmed his commitment to the company.

Born in Taipei, Huang immigrated to the United States at age nine and founded Nvidia in 1993. The company has experienced rapid growth due to the success of its graphics processing units (GPUs), essential for generative AI development.

Former U.S. President Donald Trump stated he would be “watching very closely” a forthcoming trip to China and noted Huang was “an honest” and “remarkable” person, but added, “you never know what’s going on.”

Guo Jiakun, a spokesperson for the Chinese Ministry of Foreign Affairs, categorically denied the allegations, calling the story “baseless defamation and slander.”

Analysts suggest the scandal could trigger multiple congressional inquiries and poses a risk to Nvidia’s stock, potentially intensifying scrutiny on sales of microprocessors to China.