Nvidia board opens probe into Jensen Huang after reports of Chinese spy effort
In brief
- Independent directors, assisted by outside counsel, will oversee Nvidia's inquiry into Huang.
- FT and NYT reports, citing U.S. intelligence, link Huang to an alleged Chinese intelligence asset.
- Huang admitted in an email to staff, published by CNBC, that he was unfaithful to his wife.
- Nvidia shares fell 5% to $177.32 in Monday premarket trading, per Yahoo Finance data.
What the reports allege
The Financial Times reported on Saturday that a U.S. government memo, based on intelligence information, said Huang had been romantically involved with Alice Huang, an executive at Singapore-based Nvidia customer Megaspeed. The FT cited people familiar with the memo. It also reported that U.S. intelligence believes she was recruited by China's Ministry of State Security. Nvidia declined to comment to the FT on the memo.
The FT story follows a New York Times investigation last month. That report said U.S. intelligence agencies had concluded Alice Huang (also known as Huang Le, a Chinese citizen) was a Chinese intelligence asset, and that surveillance of her revealed a close relationship with Jensen Huang. According to the Times, President Donald Trump was briefed on the findings roughly a year ago and chose not to act on them.
The Times also reported that U.S. officials suspected Megaspeed of helping Chinese companies get around restrictions on advanced AI chips, and that the Commerce Department handed its investigation to the Justice Department. Trade records cited by the paper show Megaspeed's sister company in Malaysia bought at least $4.8 billion worth of AI equipment containing Nvidia chips between June 2024 and February 2026.
Denials and responses
Nvidia told the Times that Huang's interactions with Alice Huang were "not unusual or unexpected," and that customers like Megaspeed receive ordinary business information. Megaspeed said it's retained outside counsel to conduct an internal investigation. Alice Huang didn't respond to the Times' requests for comment, and China's embassy in Washington called the allegations "groundless smears and slanders."
"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," it said
Huang's email and the market
In a Sunday email to employees, published by CNBC, Huang apologized to his family and colleagues and admitted he'd been unfaithful to his wife. The email didn't name the person. He wrote that he supports the board's investigation and will cooperate fully, and he asked for privacy for his family. Nvidia told CNBC he'll continue to lead the company as CEO without interruption.
Congress is getting involved. According to the FT, Republican leaders asked Huang to appear privately before the House China, foreign affairs and intelligence committees, while Sen. Chris Coons (D-DE), set to chair the Senate Foreign Relations Committee from January, said in a tweet that Congress would investigate.
Nvidia shares were down 5% at $177.32 in Monday premarket trading after closing at $186.64 on Friday, according to Yahoo Finance data.
