Nvidia CEO Jensen Huang acknowledged an extramarital affair in an internal memo to staff. The 63-year-old executive stated in the message that he had not been faithful to his wife, causing pain to his family.
The disclosure followed reports that Huang had been targeted by a foreign intelligence operation involving Alice Huang, a former executive at Singapore-based chip procurement firm Megaspeed International. US intelligence officials suspect Alice Huang acted as an intelligence asset for China and attempted to funnel advanced artificial intelligence chips past export restrictions.
Nvidia formed an independent committee of directors to investigate the security allegations surrounding its chief executive. The review will be assisted by external independent legal counsel and aims to examine all available information regarding the espionage claims.
The Nvidia Board of Directors stated it had no reason to believe that national security or company secrets had been compromised. Nvidia said the news would not hinder the company, and a company spokesperson told CNN that Huang remains fully committed to continuing to lead Nvidia as CEO of the $4.5 trillion chipmaker.
Asian stock markets were poised for pressure on Monday amid new uncertainty related to Nvidia, adding to concerns in the technology sector after a major sell-off, according to Bloomberg News. Contracts traded on the Hyperliquid blockchain and tied to Nvidia’s share price fell after the board began its investigation.
US authorities have been investigating Megaspeed International’s alleged role in channeling Nvidia chips to China in violation of export restrictions. Megaspeed has served as a customer for Nvidia data center projects in Asia.
Alice Huang is a former managing director at Megaspeed International who previously worked as a state television journalist in China and as a private banker. US officials suspect she was recruited by Chinese intelligence.
Jensen Huang wrote to Nvidia employees that he took full responsibility for his actions and the pain he caused his family, stating that he owed an apology to his wife, children, and colleagues.
The Nvidia Board of Directors stated that it currently has no reason to believe that company secrets or US national security have been compromised.
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