Nvidia CEO Jensen Huang admits affair with suspected Chinese spy; AI chip giant launches probe
PTC News Desk: Nvidia CEO Jensen Huang has reportedly admitted to having an affair with a Chinese woman who was allegedly working as a spy for Beijing. He said there was "no excuse" for his actions and apologised to his wife, Lori Huang, and their children. The AI chipmaker has also launched an independent investigation into claims that Huang was involved in a relationship with a Chinese businesswoman.
The development follows reports that the woman, identified as Alice Huang, was secretly collecting information for the Chinese government while building a close relationship with the Nvidia chief. Alice Huang, whose surname is the same as Jensen Huang's but who is not related to him, has also been identified as Huang Le. She was associated with Megaspeed, a Singapore-based data centre company.
"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," he said, adding that he would take full responsibility for his actions.
Jensen Huang, who co-founded Nvidia in 1993 and has led the company for more than three decades, also admitted that he had failed in his responsibilities towards the company's employees, board members and shareholders.
The personal controversy has also raised national security concerns because of Nvidia's important role in the global technology industry.
"While the Board has no reason to believe that either national security or Nvidia secrets were compromised, the Board's inquiry will examine all available information," the company said in a statement, adding that protecting US national and economic security remained a priority.
Nvidia's board of directors said it had ordered an independent investigation after reports claimed that its CEO had been targeted in a foreign intelligence operation.
The inquiry will be handled by a committee of independent directors with support from external legal experts. Huang has supported the investigation and said he would fully cooperate.
Investors concerns add to pressure
The investigation comes at a crucial time for Nvidia, which has become one of the biggest companies driving the global artificial intelligence (AI) boom. Its chips are used to power AI systems developed by major technology companies, including OpenAI and Meta.
Jensen Huang played a major role in turning Nvidia from a company mainly known for making graphics technology for video games into a leading supplier of chips for AI computing. Since co-founding the company in 1993, he has guided it through several challenges and helped it reach a multi-trillion-dollar market value.
However, Nvidia is already facing concerns from investors over whether the huge spending on AI can continue. The company's estimated market value of $4.5 trillion has come under pressure amid a wider fall in technology stocks. Its shares have also lost the gains made earlier this year.
The latest controversy could create further uncertainty for the company, especially because Huang plays a central role in its business decisions and global strategy. Dan Ives, a partner and senior managing director at Yorkville Ives & Co, said the investigation could create additional risks for investors because Nvidia's future is closely linked to its CEO.
"There is clearly a 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," Ives said.
He described the developments as a major setback for Huang and said the allegations could lead to inquiries by the US Congress and increased scrutiny of Nvidia's chip sales to China.
- PTC NEWS
