The board of directors of Nvidia, an American semiconductor giant, launched an independent investigation on Sunday after recent articles evoking a Chinese espionage operation, led by a woman, having targeted its founding boss, who concomitantly admitted an extramarital relationship.
In a press release, the council justifies its decision by “recent press reports indicating that the founder and boss Jensen Huang was targeted by the efforts of foreign intelligence services”, without indicating the geographical origin or the content.
Stating that the board “has confidence in Jensen and his management team,” he stressed that the big boss “fully supports this review and is committed to cooperation.”
Also on Sunday afternoon, Mr. Huang sent a message to the group’s employees – a copy of which AFP obtained – in which he acknowledged having had an extramarital relationship and was “deeply sorry” about it.
However, he does not give details concerning this relationship, nor does he react to recent accusations published in the media.
The “New York Times” wrote at the end of October that a Chinese manager of the Megaspeed company – Alice Huang, unrelated to the boss of Nvidia, also known as Huang Le – was suspected by the American intelligence services of having operated as an agent of Chinese intelligence and of having established a close relationship with Jensen Huang.
This company, based in Singapore, is suspected of having diverted advanced AI chips from Nvidia to China, the newspaper said, citing anonymous sources close to the investigation.
Information that Beijing then described as “unfounded speculation”, while American President Donald Trump gave his support to the “brilliant” boss of Nvidia.
“We are going to examine this very closely,” declared Mr. Trump, advised by Jensen Huang on AI.
The latter was part of the delegation of bosses traveling with the American president to meet his Chinese counterpart, Xi Jinping, in Beijing in May.
Questioned on Sunday before his departure from Florida where he spent the weekend, Mr. Trump noted that Jensen Huang was “an honest person” and a “remarkable person, but you never know what’s going on.”
“He probably has an excuse” for this situation, the president continued, considering that Mr. Huang – with whom he did not speak on Sunday – had done an “amazing job for our country”.
For his part, US Secretary of State Marco Rubio refused to comment on the matter on Sunday, saying it was an “internal company” matter.
Mea culpa
Addressing his Sunday message also to his colleagues at Nvidia, the board of directors, partners and shareholders around the world, Mr. Huang notably assured of his “total commitment” to the company.
“My responsibility is to serve you and be worthy of your trust. I failed you,” he added, in this mea culpa towards his family and Nvidia.
A spokesperson for the group told AFP that “the news of the day will not slow down Nvidia. Jensen is determined to continue leading Nvidia as boss without interruption.”
“The board prioritizes the national and economic security of the United States, which are fundamental to the interests of Nvidia and its shareholders,” continued the board press release, specifying that a committee of independent directors, “assisted by independent external lawyers”, would supervise this investigation.
“While the board has no reason to believe that national security or Nvidia’s secrets have been compromised, the board’s investigation will consider all available information,” he said, specifying that additional information would be provided when it is “appropriate”.
In his personal message, Mr. Huang assured that he was “determined to protect Nvidia and defend the national security of the United States” and confirmed that he supported the independent internal investigation and intended to cooperate with it.
For Dan Ives, director of Yorkville Ives, this is a “very embarrassing moment for Jensen that will trigger multiple parliamentary inquiries, at the very least.”
It will also constitute “a sword of Damocles on the action for a myriad of reasons,” he said, expecting Mr. Huang to keep his position “without interruption in the short term” even if there is “clearly a risk” that he loses it. This episode will “increase major attention regarding the sale of microprocessors to China”.
The Financial Times reported earlier this week that Nvidia had ordered its data center partners to restrict their activities with Chinese customers.
