$4.5 Trillion Nvidia Investigating CEO’s Affair With an Alleged Chinese Spy

Nvidia, a $4.5 trillion company at the time of writing, has a new CEO scandal. Nvidia said on Sunday that its board is investigating whether its CEO, Jensen Huang, had been targeted by foreign intelligence as part of an extramarital affair.

Huang admitted to the affair in a public statement to Nvidia employees.

“I owe my family and all of you an apology,” the 63-year-old CEO said. “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.

“Throughout my life, my family has given me love and support. They deserve my honesty and loyalty. Instead, I let them down and damaged the life we built together. I take full responsibility for what I did and the hurt I caused, and I accept the criticism that comes with it.”

Huang continued, addressing his wife and family in a public statement on Nvidia’s website, before turning his attention to the company he has led for over three decades, saying the company’s “board, partners, and shareholders” deserve “better” from him.

“Leading NVIDIA is the privilege of my life. My responsibility is to serve you and be worthy of your trust,” Huang writes. “I have fallen short of that responsibility. I am fully committed to NVIDIA and will work to earn back your confidence.”

While people certainly have plenty of beliefs surrounding extramarital affairs and breaches of trust in personal settings, Huang’s admitted affair potentially takes on a much bigger meaning. Nvidia’s board said it is investigating Huang’s affair to determine if Huang’s affair partner, Alice Huang (unrelated), is a foreign intelligence operative passing vital information to China.

While this story escalated dramatically on Sunday when Huang admitted to an affair and Nvidia said it was launching an investigation, The New York Times reported about Jensen and Alice Huang’s close relationship late last month, adding that U.S. authorities had investigated Alice Huang and the company she used to work for, Singapore-based Megaspeed. U.S. authorities determined that Alice Huang was a suspected Chinese intelligence asset.

Another New York Times report alleges that Alice Huang was recruited by top Chinese agencies to get information on Jensen Huang to exert pressure on the company to supply its best AI chips to Chinese companies, which would, of course, have huge implications for the global AI race and the techno-geopolitical landscape.

As for Nvidia’s investigation, the company says it is working with independent outside counsel to examine Huang’s actions.

“The NVIDIA Board is initiating an ​independent investigation in light of recent reporting that founder and CEO Jensen Huang has been the target of a foreign intelligence effort. A committee of independent directors, assisted by outside independent counsel, will oversee the investigation,” Nvidia says.

Nvidia and Jensen Huang are very popular in the White House, and unsurprisingly, President Donald Trump had something to say.

“I have not spoken to him ​about it. I just know he’s a ​fine person, but you never know what is going on. I hope everything’s fine,” Trump told reporters yesterday, November 8. “I think he’s an honorable guy.”

Trump said that Huang had done “amazing” work for the United States and added, “I think he probably has an excuse for it.”

This is simply massive news in the technology industry and could have far-reaching impacts. As investor Gary Black tells Reuters, this casts serious doubt on Huang’s ability to lead Nvidia following the probe. There’s no obvious succession plan inside the company, either.

Others don’t think Huang will be replaced anyway, with many citing concerns about Nvidia’s valuation if he were removed from his leadership position.

“It would be an absolute bloodbath,” says Chris Weston, Head of Research at Pepperstone.

Nvidia’s stock dropped nearly 6% in pre-market trading.

“If it is found out that she’s confirmed as a spy, then, crikey, it doesn’t go well,” Weston adds.

“I am hoping for a simple affair, not a risk to our national security,” Bill Ackman, Pershing Square CEO, told Reuters.

Ahead of its investigation, Nvidia itself says it has no reason to believe that Huang’s affair compromised the company or U.S. national security interests.

---

Image creditsHeader photo licensed via Depositphotos.com.