Nvidia’s board of directors announced Sunday the opening of an independent investigation after CEO Jensen Huang was the target of a foreign intelligence effort.
The announcement follows the recent New York Times and Financial Times report on Huang’s relationship with Alice Huang, a Chinese businesswoman who newspapers said had been recruited to spy for China. The two are not related.
A person familiar with the matter told NBC News late Sunday that U.S. intelligence agencies had determined that Alice Huang was a Chinese spy and had a relationship with Nvidia’s Jensen Huang.
“NVIDIA’s Board of Directors is launching an independent investigation in light of recent reports that founder and CEO Jensen Huang may have been the target of foreign intelligence efforts,” the company said in a statement.
“A committee of independent directors, assisted by independent outside advisors, will oversee the investigation. The board prioritizes the national and economic security of the United States, which is paramount to the interests of NVIDIA and its shareholders.”
The company added that while it “has no reason to believe that NVIDIA’s national security or secrets were compromised, the Board’s investigation will consider all available information.”
In a memo to Nvidia employees that the company shared with NBC News, Huang said: “I have been unfaithful to my wife. My actions have hurt her and our children. There is no excuse for what I did.”
The New York Times and Financial Times reported that Alice Huang, a Chinese citizen whose Singapore-based company purchased Nvidia’s advanced chips, was under surveillance by U.S. intelligence agencies. These agencies, according to reports, discovered that she had been recruited to spy by China’s top intelligence agency.
Jensen Huang and Nvidia have been at the forefront of the artificial intelligence boom for years. Nvidia’s products are the most sought-after chips in the world; However, the sale of its premium products to Chinese customers is mostly limited due to national security fears.
China has long sought to become a global leader in AI. President Xi Jinping has set a deadline of 2030 to surpass the capabilities of America’s AI systems.
Huang, 63, serves essentially as an ambassador for the industry, appearing regularly alongside President Donald Trump and Britain’s King Charles III and at conferences to tout his company and what he says will be a huge future reward for AI.
In October, Trump awarded Huang the National Medal of Science, one of the nation’s highest honors for achievements in science and technology.
Nvidia is the second-largest publicly traded company in the world as of Friday, with a value of nearly $4.5 trillion. This represents an increase of more than 500% over the last five years.
Huang’s wealth also exploded as he ran the company. His net worth has grown from around $25 billion at the start of 2022 to nearly $160 billion, making him the 10th richest person in the world, according to the Bloomberg Billionaires Index.
In the latest round of reports, released Sunday afternoon, the New York Times reported that concerns within the U.S. government about Alice Huang and Jensen Huang have reached as high a level as that of Secretary of State Marco Rubio.
Speaking to reporters in Florida on Sunday shortly after Nvidia’s announcement, Rubio said: “I simply cannot comment due to the nature of the situation, nor can I comment on an ongoing internal company matter at Nvidia.” »
Shortly after, Trump gave his full support to Huang, telling reporters that he thought Huang was a “good person” who should remain CEO of Nvidia. “I think he’s an honorable guy,” the president said.
“He’s done an incredible job for our country,” Trump added, while touting recent stock market gains. The president also said he would support Huang’s arrival on his upcoming trip to Asia.
Asked by reporters whether Trump would have wanted to act on the intelligence about Alice Huang, he replied: “No, I don’t think so.”
On Friday, the FT reported that the US government believed Jensen Huang was romantically involved with Alice Huang. In response to the article, the FT reported that Nvidia declined to comment and said Jensen Huang meets with “thousands of customer executives every year”, as any CEO usually does.
Huang previously defended his interactions with Alice Huang, describing them as business-related in a recent statement: “Our relationship, our interactions have been related to Megaspeed, and all of this was completely normal and not unusual. »
In Sunday’s note, Huang wrote: “To my wife and family: I love you. I know an apology cannot undo what I did. I hope our family heals and that in time I can regain your trust.”
The email to employees continues: “To my colleagues at NVIDIA, including those I have worked with for decades, as well as our Board of Directors, our partners and our shareholders around the world: you deserve better from me. Leading NVIDIA is the privilege of my lifetime. My responsibility is to serve you and be worthy of your trust. I have not fulfilled that responsibility. I am fully committed to NVIDIA and will work to regain your trust.”
An Nvidia spokesperson told NBC News that “today’s news will not slow down” the company and that Huang is “committed to continuing to lead NVIDIA as CEO without interruption.”
Before Sunday’s announcement, Nvidia and Huang were already facing scrutiny from Congress over the reports surrounding Megaspeed and its executive. On Thursday, top House Republicans asked Huang for a briefing on those reports.
“Recent reports raise significant national security concerns regarding the PRC’s access to sensitive United States technology and information,” said Rep. John Moolenaar, Republican of Michigan, who is also chairman of the House Select Committee on China. “PRC” is shorthand for the People’s Republic of China.
“It is essential that Congress determines the extent to which American national security has been put at risk,” read a letter to Nvidia.
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