Nvidia board opens independent investigation into reports Jensen Huang was a foreign intelligence target

A committee of independent directors, assisted by outside independent counsel, will oversee the investigation[1]. The board said it has no reason to believe that national security or Nvidia secrets were compromised, but that its inquiry will examine all available information, and that it has confidence in Huang and his leadership team[1]. It promised further updates as appropriate.

In the email, Huang apologised to his family and colleagues, writing that he had been unfaithful to his wife and that he takes full responsibility[2]. On the national security questions raised in news reports, he wrote that he supports the board's investigation and will cooperate fully, and that he is committed to protecting Nvidia and supporting America's national security[2]. He asked for privacy for his family.

Nvidia told CNBC that Huang is committed to continuing to lead the company as CEO without interruption[3].

According to CNBC, citing reports in The New York Times and the Financial Times, US intelligence agencies have expressed concerns that a businesswoman named Alice Huang has been passing information to Beijing[3]. She is affiliated with Megaspeed, a cloud company and Nvidia customer that has been accused of helping restricted Chinese companies obtain Nvidia AI chips; Nvidia has previously said Megaspeed was already investigated for evading export controls[3].

TechCrunch reports that a memo circulated among US policymakers earlier this year claimed she had been recruited by China's Ministry of State Security, and that Nvidia had earlier described the pair's interactions as "not unusual" while stressing it does not share classified information with customers[4]. These are allegations reported by the press, not findings, and Huang's email does not name her[2].

Nvidia sits at the centre of the AI chip supply chain and of US export control policy towards China, so questions about its CEO and a customer accused of routing chips to restricted buyers land well beyond one company[3]. The scope of the board's review, who the outside counsel is, and any update the board publishes are the things to watch next.