Nvidia launches investigation into CEO spy affair, top executive admits infidelity
Chip giant Nvidia has initiated an independent investigation into the intimate relationship of top executive Jensen Huang with a woman who, according to U.S. intelligence agencies, was recruited by the Chinese secret service for espionage. The company announced this in a press release following reports by The New York Times and the British newspaper Financial Times (FT).
This week, the newspapers reported that the woman, who is a manager at Megaspeed, a Singaporean client of the American Nvidia, tried to extract chip secrets from the Nvidia executive on behalf of the Chinese secret services. She has reportedly been under the scrutiny of U.S. intelligence agencies for a year.
The board of directors stated in the announcement that there is no reason to believe that national security or company secrets have been compromised.
Spy for China
That the woman named Alice Huang, also known as Huang Le, might have been a Chinese spy was shared in a memo with a small group of American officials. This happened shortly before President Trump went to Beijing in May to meet with Chinese leader Xi.
Megaspeed is one of Nvidia's largest customers in Southeast Asia. The company purchased more than 4.8 billion dollars worth of chips over the past two years, writes The New York Times. Last year, Megaspeed was accused by the U.S. of smuggling advanced Nvidia chips to China.
An employee of the U.S. Department of Commerce found boxes of Nvidia goods in a Megaspeed data center in Malaysia. The fact that the goods were still packed suggested they were not used in that data center but were to be shipped to China, contrary to U.S. export regulations.
According to Nvidia, there was no evidence of irregularities, but the U.S. Department of Justice is still investigating the case.
Trump
On top of that, Jensen Huang tried this year to convince Trump to export advanced chips to China. The U.S. does not want this because it could lead to the Chinese military modernizing faster and developing AI models. To prevent this, the U.S. has imposed export restrictions.
Earlier, Nvidia said there was nothing unusual about the relationship. According to the company, their CEO meets thousands of customers annually, so a meeting with the woman would not be particularly remarkable. Images of the two on various occasions circulate on social media. For example, they can be seen drinking whisky together and dining in a restaurant in the Taiwanese capital Taipei.
The chip giant's CEO has admitted in a message to the board of directors that he cheated on his spouse. He says he takes full responsibility for this. According to a spokesperson, Huang will remain in charge of the company and will cooperate with the investigation. "I remain fully committed to Nvidia and will work to regain your trust," said the CEO.
Nvidia, with a market value of nearly 5 trillion dollars, is one of the most valuable companies in the world. The chips the company makes are essential for developments in the field of AI.