Nvidia’s Jensen Huang Admits Affair as Board Opens Probe
Nvidia CEO Jensen Huang admitted in an email to employees that he was unfaithful to his wife, as the company's board opened an independent investigation into reports he had a relationship with a suspected Chinese spy. The board says it has no reason to believe secrets were compromised.
Nvidia's Jensen Huang admits to an extramarital affair, and the chipmaker's board has opened an independent investigation into reports that the woman involved was a suspected Chinese spy. Huang, Nvidia's chief executive, made the admission in an email to employees on Sunday, according to the text of his message.
Nvidia is worth some $4.5 trillion and supplies chips to AI developers including OpenAI and Meta. Investors now face a question about leadership at one of the world's most valuable companies.
"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," Huang wrote.
He told colleagues, the board, partners and shareholders that "you deserve better from me" and that he was "fully committed to Nvidia" and would work to earn back their confidence.
What the board said
In a separate statement, Nvidia's board said a committee of independent directors, assisted by outside independent counsel, will oversee the investigation. It cited "recent reporting that founder and CEO Jensen Huang has been the target of a foreign intelligence effort."
"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 statement said. Huang said he supports the inquiry and will cooperate fully.
The reported spy link
Last month, The New York Times reported that US intelligence officials believed Alice Huang, a Chinese businesswoman, acted as an intelligence asset for Beijing. She is a former leader at Megaspeed, a Singapore-based data centre firm and Nvidia chip customer. She is of no relation to Jensen Huang.
The report, citing unnamed sources, said surveillance picked up communications between her and an American citizen later identified as Jensen Huang. Alice Huang did not respond to the paper's request for comment.
China has previously rejected the allegations, calling them "groundless speculation." Megaspeed told the newspaper its current leadership took the allegations seriously and had appointed external legal advisers for an internal investigation.
Investor concerns
Dan Ives, partner and senior managing director at Yorkville Ives, told investors in a note on Sunday that the probe is a "black eye" for Huang and will likely prompt multiple congressional investigations.
"There is clearly 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 wrote. He still expects Huang to stay in the role without interruption in the near term.
Ives said the case will also increase scrutiny of chip sales to China, "a key battleground issue in DC." The US government has banned sales of Nvidia's advanced AI chips to China, though the company has lobbied to keep offering the hardware.
Last week, members of Congress wrote to Huang asking him to appear before them over the reported relationship. Huang has led Nvidia for more than 30 years.
"I love our country and our company," Huang said in his statement. "I am committed to protecting Nvidia and supporting America's national security."
