Nvidia probes CEO’s conduct amid national security scrutiny

An earlier agreement, brokered with the Trump administration, allowed for the export of older H200 chips to China, with the U.S. government receiving a portion of the sales. This move had a limited impact on Nvidia’s revenue and drew criticism from within the U.S. government.

The U.S. government had already been investigating Megaspeed, alleging it was involved in smuggling Nvidia chips to China. Nvidia announced Sunday that an independent committee of directors, assisted by legal counsel, will conduct an internal investigation.

“The board prioritizes US national and economic security, which is paramount to the interests of Nvidia and its shareholders,” the company stated. “While the board has no reason to believe that either national security or Nvidia secrets were compromised, the board’s inquiry will examine all available information.”

Huang, a co-founder of Nvidia in 1993, maintains a tight-knit leadership team and has fostered a streamlined organizational structure that he attributes to the company’s rapid growth and market dominance. Nvidia’s valuation has surged from approximately $1 trillion in 2023 to $4.5 trillion currently.

Elon Musk, a known associate of Huang, publicly expressed support, calling him “one of the greatest entrepreneurs of this generation” and essential to America’s AI leadership. However, Representative John Moolenaar, chairman of the House China committee, has requested Huang’s testimony before Congress to address concerns regarding China’s access to sensitive technology.