US technology giant Nvidia has launched an independent investigation into allegations that its Chief Executive Officer, Jensen Huang, had a relationship with a Chinese businesswoman suspected of spying for Beijing.
The investigation follows reports that Alice Huang, an unrelated former executive of Singapore-based company Megaspeed, had a close relationship with the Nvidia chief and was investigated by US authorities over alleged links to Chinese intelligence.
According to The New York Times, US intelligence officials concluded that Alice Huang was a Chinese intelligence asset.
The allegations have raised concerns about potential national security implications and the possible exposure of sensitive information at Nvidia, one of the world’s most valuable technology companies.
However, Nvidia said its board had no reason to believe the company’s confidential information or national security had been compromised.
Jensen Huang reportedly admitted to Nvidia employees that he had been “unfaithful” to his wife but did not disclose details of the alleged relationship.
He also apologised for hurting his wife and children.
Despite the controversy, Nvidia has maintained that Huang remains committed to leading the company.
The development has also affected the company’s shares, which fell during out-of-hours trading on Monday as investors reacted to news of the investigation.
Trading data from the Hyperliquid exchange and Blue Ocean system showed Nvidia shares at about $180.30, down approximately 3.4 per cent from Friday’s Nasdaq closing price of $186.64.
Chris Weston, head of research at brokerage Pepperstone in Melbourne, said the allegations were weighing on investor confidence.
“The market’s probably telling you now this does no favours to the stock whatsoever in a time when there’s a lot of conjecture as to the build out of data centres,” he said.
However, Weston said he did not expect Huang to be replaced, describing him as the “godfather of AI”.
“If we genuinely thought he was going to step down … the stock would be down — it would be an absolute bloodbath, to be honest,” he added.
The controversy has also drawn reactions from prominent business figures.
Billionaire investor Bill Ackman, founder of Pershing Square Capital Management, described Huang as an “incredible human,” but said the allegations could present a serious problem if they involved more than an affair.
“I am hoping for a simple affair, not a risk to our national security,” he added.
Tesla Chief Executive Officer Elon Musk also commented on the controversy, agreeing with a post by Sequoia partner Shaun Maguire, who criticised Huang’s alleged conduct but described him as important to America’s leadership in artificial intelligence.
US President Donald Trump said on Sunday that he had not spoken to Huang about the allegations but described him as a fine person.
“I hope everything’s fine. He’s done such an incredible job,” Trump said.
Asked whether he believed he should have acted on intelligence about the alleged relationship when he was briefed, Trump replied: “No, I don’t think so. I think he’s an honorable guy. I think he probably has an excuse for it. You have to hear it.”
The New York Times reported that Trump had been briefed about the intelligence findings approximately a year earlier but chose not to act on the information.
Meanwhile, the controversy has had implications for Nvidia’s planned activities in South Korea, with Huang’s daughter, Madison Huang, who is also an Nvidia executive, cancelling a scheduled visit to Seoul for an Nvidia conference.
The investigation comes as Nvidia remains a central player in the global artificial intelligence industry, supplying advanced chips used to develop and power emerging AI technologies.
Faridah Abdulkadiri
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