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Why is Nvidia’s Jensen Huang at the centre of a US-China spy scandal?

Confirmed

World Desk

In Short: Nvidia chief Jensen Huang admitted to an affair with a woman US officials claim was working for Chinese intelligence, prompting an internal investigation.

Nvidia CEO Jensen Huang gestikuliert
Photo: Maurizio Pesce / Wikimedia Commons (CC BY 2.0)

Nvidia CEO Jensen Huang gestikuliert.

Nvidia opens probe into Jensen Huang's relationship to alleged Chinese spy. USA TODAY

Nvidia CEO Jensen Huang acknowledged an affair with a woman whom US officials suspect of working for Chinese intelligence, leading the company's board to launch an independent probe.

In a statement, Nvidia said it had initiated the investigation 'in light of recent reporting that founder and CEO Jensen Huang has been the target of a foreign intelligence effort.'

Huang admitted to the affair in a memo to employees, stating, 'I was unfaithful to my wife.' The company's board has no reason to believe that any confidential or strategically sensitive information was compromised.

The affair involves Alice Huang, also known as Huang Le, a Chinese tech executive who reportedly developed a close relationship with Jensen Huang.

US intelligence officials believe that Alice Huang was passing information to Beijing, raising concerns about potential espionage activities.

The scandal has sent Nvidia's shares tumbling, with the company's stock falling more than 4 percent in premarket trading on Monday.

George Chen, partner and chair of digital practice at The Asia Group, cautioned that it would be premature to conclude that Jensen Huang poses a threat to US national security before the facts are fully established.

Nvidia's announcement of a $12.9 billion deal to buy AI developer platform Hugging Face may face increased scrutiny in light of the ongoing investigation.

The affair and subsequent investigation have plunged Nvidia into a crisis unprecedented in its three-decade history, with the company now facing significant challenges in both the tech and political spheres.

What this adds

The relationship between Jensen Huang and Alice Huang, and its potential impact on national security, is still under examination.

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