Nvidia CEO Jensen Huang is facing an independent investigation after media reports linked him to a Chinese businesswoman accused of gathering intelligence for Beijing. The allegations have shaken the semiconductor giant, causing its stock to fall more than 4 percent in overnight trading.
Huang, who co-founded the company more than three decades ago, admitted on Sunday to being unfaithful to his wife. However, Nvidia stated it has no reason to believe that United States national security or confidential information has been compromised. The board announced the review to determine whether the 63-year-old Taiwan-US dual national had been targeted by a foreign intelligence operation.
Allegations and Corporate Response
The controversy stems from a New York Times investigation published late last month. The report stated that US intelligence officials believed Alice Huang had been recruited by Beijing to gather information about Nvidia’s chief executive and potentially influence the company’s chip sales to China. Alice Huang is a Chinese citizen and former senior executive at Megaspeed International, a Singapore-based data centre company.
Megaspeed has become one of Nvidia’s largest buyers, purchasing approximately $4.8 billion in equipment from the US firm. A profile of Alice Huang found in a Chinese investment database listed previous employment at HSBC and Chinese television broadcasters CCTV and Hunan TV, according to the AFP news agency, which noted it could not independently verify those details.
Jensen Huang and Alice Huang are not related despite sharing a last name. The two were reportedly seen together at industry events, including a dinner hosted by Jensen Huang in Taipei during the Computex technology exhibition in 2025. In late October, Jensen Huang had told Bloomberg News that his interactions with Alice Huang were related to her company, describing them as completely normal and not unusual.
In a staff memo, Jensen Huang acknowledged his infidelity. “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,” he wrote. The Nvidia board emphasized that US national and economic security is paramount to the interests of the company and its shareholders. The board expressed confidence in Jensen Huang’s leadership and stated he has pledged to cooperate with the investigation and continue leading the company.
Political Pressure and Market Impact
The scandal has triggered bipartisan pressure in Washington. Republican lawmakers called on Jensen Huang to testify before Congress on November 18. Republican Congressmen John Moolenaar, Brian Mast, and Rick Crawford stated in a joint statement that it is vital for Congress to determine the extent to which US national security has been placed at risk.
Democratic Senator Elizabeth Warren also demanded answers from Nvidia and called for stronger legislation to prevent advanced US technology from reaching China. “NVIDIA’s Jensen Huang and NVIDIA’s board owe Congress answers,” she said. Meanwhile, President Donald Trump defended Jensen Huang, describing him as an honourable guy. When asked whether he should have acted after reportedly receiving an intelligence briefing about the allegations, Trump said, “No, I don’t think so.”
Chinese Ministry of Foreign Affairs spokesperson Guo Jiakun dismissed the allegations on Monday. He called the “so-called Chinese spy narrative” unsubstantiated and stated it was nothing but smears against China. Alice Huang has not publicly responded to the espionage allegations, and her whereabouts are currently unknown.
US authorities have been investigating Megaspeed since 2024 over suspicions that the company helped China obtain advanced Nvidia chips in violation of US export restrictions. No criminal charges against Jensen Huang or Alice Huang have been reported. The controversy comes as Washington seeks to prevent China from obtaining advanced American semiconductors, including Nvidia’s most powerful artificial intelligence chips.
Chris Beauchamp, chief market analyst at Britain’s IG Group, told Al Jazeera that the scandal deals a blow to the cult of Huang that has taken over the chip world. He added that if the situation turns into a broader congressional investigation, the shares are likely to come under pressure. “As we learned from the financial crisis in 2008 and 2009, once you go looking for skeletons in a cupboard, you usually find them,” he said.
Jensen Huang’s daughter, Madison, who also works at Nvidia, cancelled a planned visit to South Korea for an Nvidia AI event amid the controversy. Nvidia, whose market capitalisation of $4.5 trillion is higher than the gross domestic product of Japan, was until October 30 the most valuable company in the world. The company supplies chips used by major US technology companies to train and operate AI models.
Source: Al Jazeera
