Nvidia’s board has launched an independent investigation into whether CEO Jensen Huang was targeted by a Chinese intelligence operation after he acknowledged having an extramarital affair with a business executive suspected of spying for Beijing.
The investigation, announced Nov. 8, follows reports that U.S. intelligence officials believed Alice Huang, a former executive at Singapore-based data center company Megaspeed International, had been recruited by Chinese intelligence to gather information about the Nvidia CEO.
The investigation will seek to establish whether the reported intelligence operation compromised Nvidia’s business, technology or national security obligations.
China’s Foreign Ministry rejected the espionage allegations, describing them as unsubstantiated smears against the country.
President Trump, meanwhile, has defended Huang, describing him as an honorable person.
‘Deeply sorry’
Jensen Huang, who co-founded Nvidia in 1993 and has become one of the most influential executives in artificial intelligence, acknowledged his infidelity in a message to employees released by the company.
“I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry,” Huang wrote, according to published reports.
The board’s investigation will be conducted by a committee of independent directors assisted by outside legal counsel. Nvidia said Huang supports the inquiry and will cooperate fully. Nvidia said it has no reason to believe U.S. national security or company secrets were compromised.
The company, valued at more than $4 trillion, has become central to the global AI industry because its processors power many of the world’s most advanced AI systems.
Nvidia shares fell more than 4% in Monday morning trading as investors assessed the potential consequences for the chipmaker and its leadership.
Questions over Nvidia’s China business
The controversy has raised questions about Nvidia’s relationships with overseas customers at a time when Washington is restricting China’s access to advanced American AI chips.
Megaspeed, which provides cloud computing infrastructure, has been a major Nvidia customer. U.S. authorities have scrutinized the company over suspicions that it helped China obtain advanced Nvidia processors despite American export restrictions.
According to The New York Times, Megaspeed’s sister company in Malaysia purchased $4.8 billion in Nvidia equipment between June 2024 and February 2026. The paper noted that it was an “exceptional amount of money for a small, obscure company.”
Nvidia previously defended its relationship with Megaspeed, saying its dealings with cloud customers complied with export regulations and did not involve sharing classified or sensitive national security information.
The allegations could complicate Huang’s longstanding efforts to persuade Washington to ease restrictions on Nvidia’s chip sales to China, arguing that it’s better in the long run to let the Asian nation be dependent on U.S. chips rather than letting them develop domestic alternatives.
Huang has also argued that allowing American companies to compete in the Chinese market would help preserve U.S. technological leadership.
But the reported intelligence operation has intensified concerns in Washington about whether Chinese authorities could gain access to sensitive technology or influence decisions at one of America’s most strategically important semiconductor companies.
Three senior Republican lawmakers have asked Huang to provide a closed-door briefing Nov. 18 about the allegations and Nvidia’s safeguards against foreign espionage.