Nvidia shares fall as board probes CEO Jensen Huang's intelligence links
The semiconductor company's board of directors has launched an independent investigation into reports that its chief executive was targeted by a foreign intelligence operation.
Nvidia shares fell by approximately 8 per cent in early trading in the United States on Monday after the company announced an investigation into its chief executive, Jensen Huang. According to The Indian Express, the probe follows reports that Huang was the target of a foreign intelligence effort.
The investigation was announced on Sunday by the Nvidia board of directors. A committee of independent directors, assisted by outside independent counsel, will oversee the inquiry to examine all available information regarding the reported intelligence threat.
The board stated that it prioritises US national and economic security. While the board said it has no reason to believe that Nvidia secrets or national security were compromised, the inquiry will proceed. Nvidia added that Huang supports the review and has committed to cooperating.
Reports from Fox News and The New York Times indicated that Huang had an extramarital relationship with Alice Huang, an executive at Megaspeed. The New York Times reported that the Chinese businesswoman was recruited by China’s Ministry of State Security. US authorities reportedly concluded she was an asset for Chinese intelligence.
Huang reportedly acknowledged the relationship in an internal message to employees, stating he was unfaithful to his wife, Lori Huang, and apologised for the impact on his family. The Times of India noted that the investigation has raised questions regarding Huang's future at the chipmaker.