- Nvidia's board announced a formal inquiry into Huang and stated that US national and economic security are paramount to Nvidia and its shareholders.
- Huang admitted to an affair and said he was 'deeply sorry', committing to protecting Nvidia and supporting America's national security.
- Nvidia shares opened down $15, or 8 per cent, at $172.91 on Monday, wiping more than $300bn off the company's value.
- Huang had previously denied any unusual relationship with Alice Huang, and China denied spying on him, calling the allegations 'baseless'.
- The board said it has no reason to believe that either national security or Nvidia secrets were compromised, but its investigation would 'examine all available information'.
Nvidia's board has initiated a formal inquiry into CEO Jensen Huang following his admission of infidelity, which has raised concerns about potential espionage. The investigation comes amid fears that Huang may have been compromised by a foreign plot, resulting in a staggering $300 billion loss in market value.
Huang, 63, acknowledged his unfaithfulness on Sunday, stating, “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.” The board emphasized its commitment to U.S. national and economic security, asserting that while there is “no reason to believe that either national security or Nvidia secrets were compromised,” they will thoroughly investigate all available information.8
The inquiry is particularly focused on Huang's relationship with Alice Huang, a former director at Megaspeed, a Singapore-based customer of Nvidia. U.S. intelligence agencies suspect she may have been recruited by a Chinese spy agency. Shares of Nvidia plummeted by 8 percent to $172.91 in early trading following the news, contrasting with a 1 percent rise in the broader Nasdaq tech index.
China has denied the allegations, labeling them as “baseless.” Huang had previously characterized his interactions with Alice Huang as “normal” and “nothing unusual or unexpected.”
“The board said it has 'no reason to believe that either national security or Nvidia secrets were compromised' but will 'examine all available information'. Huang, 63, said he was 'deeply sorry' and committed to protecting Nvidia and supporting America's national security.”
The Times
