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Nvidia CEO's Affair with Alleged Chinese Spy Sparks Board Investigation

Updated 9:08 PM ET · 8:04 PM ETConfirmedShare via:          

Technology Desk

In Short: Nvidia's board launched an investigation after reports that CEO Jensen Huang had an affair with a Chinese businesswoman who may have been a spy.

Jensen Huang About to Be Fired?! New Affair Allegations & Nvidia’s Future. Earn Your Leisure

Shares of Nvidia fell by around 8 percent in early trading on Monday in the United States, according to The Indian Express, as the semiconductor firm’s Board of Directors announced an investigation into CEO Jensen Huang's alleged affair with a Chinese businesswoman, Alice Huang, who was reportedly a top executive at a Singaporean data center company that works with Nvidia and may have passed information to Beijing's intelligence services.

The investigation was prompted by media reports, including those from The New York Times, which stated that U.S. Intelligence officials concluded that Alice Huang worked as a Chinese spy and had grown close to Jensen Huang, as reported by Sfstandard and Koreatimes.

Sfstandard and Mashable reported that Nvidia’s board stated they have no reason to believe that national security or Nvidia secrets were compromised but would examine all available information. The board added that they have confidence in Jensen and his leadership team, and he will continue leading the company.

The Guardian reported that Elon Musk and other finance moguls have expressed support for Huang, while Donald Trump said the FBI is looking into the matter. The Guardian also noted that Alice Huang and Jensen Huang are unrelated, with the latter being one of the world’s richest men and CEO of Nvidia for the past 33 years.

Nvidia’s semiconductor chips power several data centers and computing systems used to train and run AI models, and that shares of Nvidia had hit a lifetime high in October.

Koreatimes highlighted that if the investigation uncovers technology leaks or other security issues involving Nvidia’s business arrangements, Korean companies may have to review their business plans built around their partnerships with Nvidia. Hyundai Motor Group and LG are among the companies collaborating with Nvidia on various projects.

Background

What's confirmed

• The board said it has “no reason to believe that either national security or Nvidia secrets were compromised” but would “examine all available information.” The board added that it “has confidence in Jensen and his leadership team.” Huang, 63, will continue leading the company.
• The admission comes after more than a week of reporting by The New York Times, which published a story (opens in new tab) Oct. 29 stating that U.S. intelligence officials had concluded that Alice Huang, an executive at Singapore-based Nvidia customer Megaspeed, worked as a Chinese spy and had grown close to Jensen Huang.

What's still developing

• In pre-market trading, Nvidia’s shares tumbled sharply, and when the markets opened, the shares were down by nearly 8 per cent to $171.80, BBC reported.
• Allegations of Huang's affair arose in a New York Times report last month.
• Huang, who has been married to his wife, Lori, since 1985, admitted in an email to employees on Sunday that he had an affair and that he would cooperate with an internal investigation.
• Maguire argued the Nvidia CEO “did something incredibly dumb” but that he is “one of the greatest entrepreneurs of this generation”.

Sources

• The Indian Expresslink
• Sfstandardlink
• Mashablelink
• Koreatimeslink
• The Guardianlink
• WarpBeat — background on Nvidia Stock Drops as CEO Affair with Suspected Chinese Spy Probed link
• WarpBeat — background on Nvidia Investigates CEO Over Alleged Chinese Spy Affair link
• Earn Your Leisure — video link
• ABC News — video link
• ABC7 — video link
• ABC News — video link
• LiveNOW from FOX — video link
• CNBC Television — video link