Nvidia has launched an independent investigation following reports that its CEO, Jensen Huang, was targeted by foreign intelligence. The move comes after revelations that Huang had a close relationship with a Chinese businesswoman who allegedly passed information to Beijing.
The New York Times reported in October that former President Donald Trump was briefed last year on intelligence regarding Huang's connection with a Chinese businesswoman, an executive at Singapore-based Megaspeed. Despite the concerns, Trump expressed confidence in Jensen Huang, describing him as an 'honorable guy' and suggesting he would still include him in an upcoming trip to Asia.
Republican lawmakers, however, have shown greater concern. They have requested that Huang provide a closed-door briefing to the House foreign affairs and intelligence committees on Nvidia's security measures against foreign espionage and his relationship with the businesswoman. She has been identified by American officials as a Chinese intelligence asset, previously suspected of smuggling Nvidia chips to China.
Nvidia's board emphasized that while there is no current evidence suggesting a compromise of US national security or company secrets, the investigation will thoroughly examine all available information. The board reiterated its confidence in Huang and his leadership team, stating that US national and economic security remains a priority.
Huang has reportedly admitted to having a romantic relationship with a suspected Chinese spy, he expressed regret for his actions, acknowledging the personal harm caused to his family. Nvidia has not commented on this report.
Despite these concerns, Jensen Huang was invited to join Trump's delegation to China in May and attended a state dinner at the White House in September with his wife, Lori Huang.
Nvidia's advanced chips are central to the AI boom, placing Jensen Huang in a pivotal role within the industry. His partnership with Trump has been significant as the US government seeks to maintain its leadership in AI development. However, national security concerns have led to strict US export controls, preventing the sale of Nvidia's top-tier processors to China.
US officials have cited threats to the supply chain and national security risks as reasons for these restrictions. Treasury Secretary Scott Bessent has suggested potential sanctions against China for data and intellectual property theft. The businesswoman was suspected of aiding the Chinese government in circumventing these export restrictions.
The investigation into Huang's relationship with the businesswoman coincides with a challenging period for AI tech firms on Wall Street, including Nvidia. A recent sell-off in tech stocks, exacerbated by disappointing earnings, resulted in a significant decline in the Nasdaq exchange's value. Nvidia, previously valued at about $5 trillion, saw a 3.1% drop, contributing to the downward pressure on the S&P 500.
