Nvidia announced on Sunday that it is launching an independent investigation following reporting that founder and CEO Jensen Huang was the focus of a foreign intelligence operation, The Guardian reported.
The company's board said the inquiry would review all available information, according to The Guardian. The board also stated it had no reason to believe that either US national security or Nvidia's trade secrets had been compromised.
The move came after The New York Times reported in October that Huang had a close relationship with a Chinese businesswoman who passed information to Beijing, The Guardian reported.
Why it matters
Nvidia's processors underpin much of the current artificial intelligence buildout, which has made Huang one of the most influential executives in the technology industry. He has also built a close working relationship with President Donald Trump as Washington seeks to hold its lead in AI development, according to The Guardian.
At the same time, US export controls bar Nvidia from selling its most advanced chips to customers in China on national security grounds. Any suggestion that sensitive commercial information reached Beijing therefore carries weight well beyond the company itself.
The story also lands during a difficult stretch for AI stocks. The Guardian reported that a tech selloff, sharpened by disappointing earnings, wiped nearly $1tn off the Nasdaq in a single week and about $2tn over a month. Nvidia, previously valued at roughly $5tn, fell 3.1% and was the biggest drag on the S&P 500 in that period.
Lawmakers summon Huang as board backs its chief
The Republican-led foreign affairs and intelligence committees in Congress have asked Huang to appear at a closed-door briefing next week on Nvidia's "security protocols against foreign adversary espionage," The Guardian reported.
The board's statement said it places US national and economic security first, describing that priority as essential to the interests of Nvidia and its shareholders. Directors also expressed confidence in Huang and his leadership team and said they would issue further updates as appropriate. Huang backs the review and has pledged to cooperate, the board added.
According to The Guardian, the businesswoman at the center of the reporting is Alice Huang, also known as Huang Le, an executive at Megaspeed, a data center company based in Singapore. She is not related to the Nvidia chief executive. US officials had previously suspected her of moving Nvidia chips into China, which led to surveillance of her activities. Those officials later concluded she was working as a Chinese intelligence asset and relaying commercial information to Beijing, The New York Times reported, citing sources it did not name.
Axios reported on Sunday that a draft email from Huang to employees acknowledged a romantic relationship with the woman and accepted full responsibility, The Guardian reported. In the draft, which Reuters also reviewed, Huang said he had been unfaithful to his wife and that his actions had hurt her and their children, adding that there was no justification for what he did. Nvidia did not immediately comment on the Axios report when approached by The Guardian.
The New York Times also reported on Sunday that a memo drafted by Secretary of State Marco Rubio circulated among senior Trump administration officials last spring. It cited intelligence indicating that the woman linked to Huang was a spy for China's Ministry of State Security, according to The Guardian. Despite those concerns, Huang and his wife, Lori Huang, attended a September White House state dinner for Chinese President Xi Jinping and were seated at the head table with Trump and Xi.
Treasury Secretary Scott Bessent has separately suggested that China could face sanctions over the theft of US data and intellectual property, The Guardian reported. Megaspeed's Alice Huang was suspected of helping Beijing circumvent the chip export restrictions, according to the same reporting.
What to watch next: Huang's closed-door appearance before congressional committees and the board's findings, which directors have said will be disclosed when appropriate.
