Nvidia has launched an internal investigation into the relationship between its CEO and co-founder, Jensen Huang, and a businesswoman whom U.S. intelligence concluded was working for China, amid concerns over U.S. national security and the protection of secrets within the AI chip industry.
According to a report published by The New York Times on November 8, Huang admitted to the company's board that he had an intimate relationship with Alice Huang, also known as Huang Li, an executive at Singaporean data center company Megaspeed.
U.S. authorities began monitoring Alice Huang more than a year ago as part of an investigation into her company's possible involvement in transferring U.S. AI chips subject to export restrictions to China.
According to the newspaper, the monitoring uncovered her communications with Jensen Huang, with intelligence officials concluding that she was directly conveying information to Beijing.
U.S. Secretary of State Marco Rubio oversaw the preparation of a highly classified intelligence memo last spring containing information that China's Ministry of State Security had enlisted Alice Huang to target Nvidia's CEO.
The 63-year-old Huang admitted to cheating on his wife and apologized to his family, acknowledging that his actions had hurt his wife and children.
Nvidia's board said it had no reason to believe that the company's secrets or national security had been compromised, while appointing an external legal adviser to conduct an independent investigation.
Huang will continue to lead the company during the investigation and has committed to fully cooperating with the review.
Deals Worth Billions and Chip Smuggling Suspicions
Megaspeed is one of Nvidia's leading clients in Southeast Asia, having purchased chips worth more than $4.8 billion since June 2024.
The company is under scrutiny by the U.S. Department of Commerce over its potential involvement in the smuggling of advanced chips to China despite export restrictions on these technologies.
The newspaper also pointed to business and financial links within a network of companies associated with Alice Huang, including Chinese data center projects and financial ties to the military technology sector.
U.S. President Donald Trump defended Huang, saying he had not heard of any wrongdoing and supporting his continuation as Nvidia's CEO.
Trump also expressed his willingness to accompany Huang on a forthcoming visit to China, despite previously being aware of U.S. intelligence monitoring Alice Huang.
The issue has sparked pressure within Congress, with Democratic Senator Elizabeth Warren demanding clarification, while Republican Representative Michael McCaul called for suspending shipments of advanced AI chips to China until the circumstances of the case become clear.
The investigation remains open, with no evidence that Nvidia's secrets were leaked.
