Nvidia has launched an independent investigation into the relationship between its chief executive officer, Jensen Huang, and Alice Huang – a former executive at Singaporean data center company Megaspeed. U.S. security officials suspect that she worked for China’s Ministry of State Security, and the case has raised questions about the protection of sensitive information at one of the most important artificial intelligence companies.
Nvidia’s board of directors announced the investigation on November 8. In its statement, the company said: “We have no reason to believe that national security or Nvidia secrets have been compromised,” but stated that it would review all available information.
Huang admitted to the company’s employees that he had been unfaithful to his wife. “I owe an apology to my family and to all of you,” he wrote, adding that he would fully cooperate with the investigation. He did not name the woman, but U.S. media linked his admission to Alice Huang.
Possible access to sensitive information under review
The case took on dimensions extending beyond the CEO’s personal life because of Nvidia’s position in the global race for chips and artificial intelligence systems. The company produces processors used in data centers and in the development of advanced artificial intelligence models.
According to U.S. reports, intelligence agencies had considered Alice Huang a possible Chinese intelligence asset. The claim has not been presented as an established fact in court. China’s Foreign Ministry rejected it. “The claim about a Chinese spy is completely unsubstantiated and is intended to smear China,” spokesperson Guo Jiakun said.
President Donald Trump said he had spoken with Jensen Huang and that Huang had told him he was unaware of the woman’s alleged intelligence activities. Nvidia has not said that the investigation led to any change in the company’s leadership.
Market decline and investor lawsuit
Nvidia shares fell 4.3% on November 9, reducing the company’s market value by about $190 billion. That same day, investors filed a class-action lawsuit against Nvidia and Jensen Huang in federal court in California.
The lawsuit alleges that shareholders were not informed about the relationship or the related risks to the company’s national security, reputation and business. These claims will be examined in court proceedings, and Nvidia has not admitted wrongdoing.
Jensen Huang is a co-founder of Nvidia and has led the company since its creation in 1993. The next stage in the case is the board’s independent investigation, which must determine whether the relationship led to access to corporate or sensitive government information.
Sources: newsweek.com, apnews.com, marketscreener.com