Nvidia's board launched an independent investigation into Chief Executive Jensen Huang after he acknowledged an affair with a woman alleged to be a Chinese intelligence asset, CNBC International reported on Nov. 9.
The board backed Huang and said national security and company secrets were not compromised. Its support came as Republican lawmakers sought a closed-door congressional briefing on the potential security risks.
The allegations followed New York Times reporting last month about Huang's relationship with Alice Wang, a former executive at Singapore-based Mega Speed. The newspaper reported that the United States believed Wang was a Chinese intelligence asset.
U.S. authorities had investigated Mega Speed over suspicions that it helped China obtain advanced American chips barred from shipment to the country. The suspicions concerned access to chips subject to U.S. export restrictions.
China's foreign ministry said the spying allegations were “completely unsubstantiated.” The allegation that Wang worked for Chinese intelligence remains disputed.
Huang apologised to his family and Nvidia employees in a letter to staff. He said he had fallen short of his responsibilities in leading the company and was committed to earning back employees' confidence.
He supported the board's investigation and said he was focused on protecting Nvidia and supporting U.S. national security. The board's backing accompanied its announcement of an independent inquiry into the matter.
Republican lawmakers summoned Huang last week to appear before Congress. The chairs of the House committees covering China, foreign affairs and intelligence asked him to attend a closed-door briefing on Nov. 18.
The lawmakers said they had national security concerns and wanted Congress to determine the extent to which U.S. security had been placed at risk. Their request sought answers about potential exposure.
U.S. President Donald Trump called Huang an “honorable guy” and praised his contributions to the country while speaking to reporters. Trump said he had not yet spoken to Huang about the situation.
The president also said Huang “probably has an excuse.” He did not offer an explanation for the affair in those remarks.
Nvidia shares fell 4% in premarket trading, CNBC reported during “Selling pressure hits Nvidia amid Chinese spy allegations.” The decline accompanied the board's support for Huang and the congressional request for a briefing.
Questions about whether any secrets were shared remain unresolved. The board said none were compromised, while lawmakers sought to establish whether national security had been put at risk.
