Nvidia said on Sunday that its board is opening an independent investigation into chief executive Jensen Huang after he confirmed he had an intimate relationship with a woman accused of working for Chinese intelligence.
In a statement, the company said the probe would be conducted by "a committee of independent directors" with outside counsel. "The Board prioritises US national and economic security, which is paramount to the interests of Nvidia and its shareholders," Nvidia said, adding that it had "no reason to believe that either national security or NVIDIA secrets were compromised" but that the inquiry would examine all available information.
In an email to Nvidia staff on Sunday, Huang admitted to being unfaithful to his wife and took "full responsibility" for his actions. "I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry," he wrote.
The investigation follows a report in The New York Times on October 29 that a Chinese woman named Alice Huang, also known as Huang Le, sought to cultivate close ties with Huang in an effort to glean information about Nvidia's technology. The Times and the Financial Times later reported that Alice Huang, a former executive of Singapore-based Megaspeed, which buys AI chips from Nvidia, was suspected of being recruited by Chinese intelligence. U.S. authorities are investigating her, and Nvidia has repeatedly said no sensitive information was shared.
Top Republican lawmakers in the U.S. House have called on Huang to appear before Congress about the reports on November 18, seeking to learn about "Nvidia's security protocols against foreign adversary espionage" and his reported interactions with Alice Huang. The request, signed by the chairmen of the House foreign affairs and intelligence committees, gives him until November 11 to arrange the meeting.
The episode has rattled investors. Nvidia lost $450 billion in market value in a single trading day last week, though shares rebounded on Friday, regaining 4 percent of the losses. The company reports third-quarter earnings on November 17, a day before Huang's scheduled appearance before Congress.
