Nvidia investigates reports Jensen Huang was targeted by Chinese intelligence

Jensen Huang told Nvidia employees that he had been unfaithful to his wife, apologized to his family, and said his actions hurt his wife and children. The admission arrived alongside a far larger problem for the company he founded: reports that Chinese intelligence recruited a business executive with whom he had a relationship.

Nvidia's board opened an independent investigation Sunday after reporting by The New York Times and Financial Times said Huang had been targeted by a foreign intelligence effort involving Alice Huang. The two are not related. Reporting citing U.S. intelligence says Alice Huang was recruited by China's Ministry of State Security to gather information about Nvidia and U.S. AI chips. The reports establish an allegation, not that she obtained secrets or passed information to Beijing.

What Nvidia says: A committee of independent directors, aided by outside counsel, will run the review. The board said it has no reason to believe Nvidia secrets or national security were compromised, while also saying it will examine all available information. Huang supports the investigation and will remain CEO during it. The board said it still has confidence in him and his leadership team.

The number that matters: Alice Huang has been affiliated with Singapore-based Megaspeed, an Nvidia customer reported to have bought more than $4.8 billion in Nvidia chips and equipment over the past two years. That puts this well beyond a CEO's private conduct. Nvidia's advanced chips sit at the center of U.S. restrictions on technology exports to China, imposed over national-security concerns.

The catch: Sources differ on whether Alice Huang is currently a Megaspeed executive or a former one. China has rejected the espionage accusations as groundless speculation. Nvidia had previously said Huang's interactions with her were not unusual and that it does not share classified information with customers.

Three Republican House committee leaders have asked Huang to brief Congress on the reported relationship and Nvidia's safeguards against foreign espionage. The immediate question is what Nvidia's independent directors find when they examine the information behind the reports.