Nvidia Board Investigates CEO Amid Spy Allegations

Caption: Nvidia CEO Jensen Huang at Computex Taipei, May 31, 2016. Credit: NVIDIA Taiwan / CC BY 2.0, via Wikimedia Commons.

Nvidia’s board has opened an independent investigation into reports that CEO Jensen Huang was targeted by a foreign intelligence operation, bringing scrutiny from directors, shareholders and members of Congress to the leader of the AI-chip company.

Huang separately acknowledged being unfaithful to his wife in a message to employees. That message did not identify the other person. News reports have linked him to Alice Huang, an executive associated with Singapore-based technology company Megaspeed.

Nvidia says it has no reason to believe national security or company secrets were compromised. Its board has nevertheless assigned independent directors and outside independent counsel to examine the information.

What Huang and the board have said

In the internal message shared with ABC News, Huang apologized to his wife and children and said he would work to regain the confidence of employees, partners and shareholders.

The board’s statement expressed confidence in Huang and his leadership team while committing to an independent review. Huang supports the investigation and will cooperate, the company said.

The distinction between the personal admission and the security allegations matters. Huang acknowledged infidelity; that admission does not establish that he knowingly provided information to a foreign intelligence service.

ABC News reported that The New York Times had identified Alice Huang as the focus of U.S. intelligence concerns about information reaching Beijing. China denied the allegations, describing them as baseless. Alice Huang and Megaspeed did not respond to ABC News’ requests for comment after the Times report.

A customer connection adds to the scrutiny

The business relationship has drawn attention because Megaspeed purchases Nvidia equipment. CNBC reported that Megaspeed was under investigation in Singapore over allegations concerning restrictions on exports of advanced Nvidia chips.

Nvidia maintains that concerns about Megaspeed helping divert chips to China had been investigated and debunked, according to the BBC. That company position and the reported investigations are distinct from a finding that Huang participated in wrongdoing.

Separate reviews, different questions

President Donald Trump said he spoke with Huang on November 9 and believed his account that he had not known the woman was an alleged spy. Trump also said the FBI was looking into the matter, without providing details.

A shareholder lawsuit seeking class-action status alleges that Nvidia and Huang made misleading statements about his interactions with Alice Huang. Those are claims in a civil complaint, not established findings.

Republicans on the House Select Committee on China have requested a closed-door briefing with Huang on November 18. ABC News reported that his attendance had not been confirmed. The board review, shareholder litigation and congressional request remain separate processes; none amounts to a completed determination that protected information was compromised.

References: ABC News - Trump says Nvidia CEO told him he did not know | BBC - What we know about Jensen Huang’s affair allegations | CNBC - What is Megaspeed?