China Rebuffs Spy Narrative as Nvidia Board Probes CEO
China’s foreign ministry, when questioned on Monday regarding Nvidia’s investigation into whether CEO Jensen Huang was the target of a foreign intelligence operation, asserted that the “so-called Chinese spy narrative” lacks substantiation. Nvidia announced on Sunday that its board is investigating whether CEO Jensen Huang was the subject of a foreign intelligence operation, following a report that suggested he had a close relationship with a Chinese businesswoman who allegedly relayed information to Beijing. Huang communicated to employees that he had been unfaithful to his wife and accepted “full responsibility” for his actions. Meanwhile, Nvidia stated that the CEO remains committed to leading the company without interruption.
The developments are likely to exert pressure on the chipmaker, which has already experienced a significant decline amid concerns regarding the sustainability of the AI boom. This situation may also prompt enquiries about Huang’s future leadership of the company he co-founded, analysts noted. Source reported last month that Huang had a relationship with Alice Huang, an unrelated former executive of Singapore-based company Megaspeed, who US authorities investigated and concluded was a Chinese intelligence asset.
US authorities have examined Megaspeed, a company that purchases AI chips from Nvidia, due to concerns that it may have facilitated Beijing’s access to advanced AI chips that are prohibited from being shipped to China. “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 said.
The company stated on Sunday that although its board had no reason to suspect any compromise of US national security or Nvidia secrets, its investigation would scrutinise all pertinent information. The board expresses confidence in the CEO and his leadership team, as stated by Nvidia, which also noted that Huang is fully supportive of the review and has pledged to cooperate with it. US President Donald Trump stated on Sunday that he had not engaged in conversation with Huang regarding the allegations, yet described him as a fine individual. “I hope everything’s fine. He’s done such an incredible job,” he added.
