Nvidia's $4.5 trillion empire faces new uncertainty over Jensen Huang's future
The board is investigating whether its CEO was targeted by a foreign intelligence operation, while Huang has acknowledged an affair and pledged to earn back the confidence of employees and shareholders.
Nvidia said on Sunday that its board was investigating whether CEO Jensen Huang had been the target of a foreign intelligence operation, following reports that he had a close relationship with a Chinese businesswoman suspected of passing information to Beijing.
The announcement came after Huang acknowledged in a message to employees that he had been unfaithful to his wife and accepted “full responsibility” for his actions. Nvidia said the CEO remained committed to leading the company without interruption.
The developments threaten to add to pressure on Nvidia's shares, which have already come under strain amid concerns about the sustainability of the artificial intelligence boom. They could also raise questions about Huang's future at the company he co-founded, analysts said.
The New York Times reported last month that Huang had a relationship with Alice Huang, an unrelated former executive of Singapore-based company Megaspeed. US authorities reportedly identified her as a Chinese intelligence asset. The allegations have not been publicly established, and Nvidia's investigation is intended to examine whether Huang was targeted or whether any sensitive information was compromised.
US authorities have scrutinized Megaspeed, which buys AI chips from Nvidia, over suspicions that it helped Beijing gain access to advanced chips whose shipment to China is restricted under US export controls.
“The NVIDIA Board is initiating an independent investigation in light of recent reporting that founder and CEO Jensen Huang has been the target of a foreign intelligence effort. A committee of independent directors, assisted by outside independent counsel, will oversee the investigation,” the company said.
Nvidia added that the board had no reason to believe that either US national security or the company's trade secrets had been compromised, but that the inquiry would examine all available information. The board expressed confidence in Huang and his leadership team, saying he fully supported the review and had committed to cooperating with it.
US President Donald Trump said on Sunday that he had not discussed the allegations with Huang, but described the Nvidia chief as a “fine person.”
“I hope everything's fine. He's done such an incredible job,” Trump said.
Asked whether he believed he should have acted on the intelligence when he was briefed about it, Trump replied: “No, I don't think so. I think he's an honorable guy. I think he probably has an excuse for it. You have to hear it.”
The New York Times had reported that Trump was briefed on the intelligence findings approximately a year ago but chose not to act on the information.
US Secretary of State Marco Rubio declined to comment on Huang when asked by reporters. China's foreign ministry did not immediately respond to a request for comment from Reuters.
Huang said on Sunday that he was “committed to protecting Nvidia and supporting America's national security.”
The investigation comes as investors are already reassessing the outlook for Nvidia and the broader AI industry. The chipmaker, valued at approximately $4.5 trillion, has seen its shares give up their gains for the year amid a wider technology selloff driven by concerns about the scale and sustainability of AI spending.
Huang, who has led Nvidia for more than three decades, has been central to its transformation into the world's dominant supplier of AI chips. His position at the company is therefore closely tied to investor confidence in its strategy and future growth.
“There is clearly risk that Jensen could be removed as CEO depending on the Board investigation and this will add risk to the stock as he is so important to the Nvidia story and strategy globally,” said Dan Ives, partner and senior managing director at Yorkville Ives & Co.
“This is a black eye moment for Jensen and will spark multiple congressional inquiries at a minimum and will create an overhang on the stock,” Ives said, adding that the developments would also intensify scrutiny of Nvidia's chip sales to China.
In his message to employees, Huang acknowledged that he had been unfaithful to his wife.
“My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry,” he wrote.
Addressing employees, board members, partners and shareholders, Huang added: “My responsibility is to serve you and be worthy of your trust. I have fallen short of that responsibility. I am fully committed to NVIDIA and will work to earn back your confidence.”
In late October, Huang told Bloomberg News that his dealings with Alice Huang were connected to Megaspeed and were “completely normal and not unusual.”
The controversy is also drawing attention from Washington. Senior Republican lawmakers in the US House of Representatives have asked Huang to brief Congress this month about the allegations raised in the New York Times report.
In a letter dated November 4, the lawmakers said the report raised “significant national security concerns regarding (China's) access to sensitive US technology and information.” They added: “It is vital that Congress determines the extent to which US national security has been placed at risk.”
The request comes against the backdrop of US export controls introduced since 2022 to restrict China's access to advanced Nvidia chips and the equipment needed to manufacture them.
