Nvidia Probes Reports Of China Spying Effort Targeting CEO Jensen Huang; Shares Down

(RTTNews) - AI chip major Nvidia Corp.'s Board of Directors has initiated an independent investigation over recent media report against founder and CEO Jensen Huang being the target of a foreign intelligence effort. The probe comes after he confirmed having an affair with a Chinese woman named Alice Huang, or Huang Le, accused of working for Chinese intelligence.

Following the news, NVDA shares were losing around 4.4 percent in the overnight activity on the Nasdaq.

In late October, a report in The New York Times had mentioned that Jensen may have been the target of a Chinese spying plot. The Times then said that it had received exclusive information about a Chinese woman having close ties with Jensen aiming to gain key information about Nvidia's technology.

In a statement on Sunday, the company announced that its Board prioritizes U.S. national and economic security, and that the investigation will be conducted by a committee of independent directors, assisted by outside independent counsel.

The company's board of directors said, "While the Board has no reason to believe that either national security or NVIDIA secrets were compromised, the Board's inquiry will examine all available information."

Meanwhile, Jensen, in an email to Nvidia employees, earlier on Sunday had admitted to having an extramarital relationship.

He said, "I was unfaithful to my wife. My actions hurt her and our children. There is no excuse ?for what I did."

Nvidia Board said Jensen fully supports the review and has committed to cooperating with it. The Board also said it has confidence in Jensen and his leadership team and will provide further updates as appropriate.

Meanwhile, the Chinese Embassy in Washington, DC, reportedly has denied any allegations of spying in the case.

The surging demand for Nvidia's AI chips amid the AI boom has made it a chip giant with market cap of around $4.507 trillion. The US has been restricting the export of advanced chips to China in efforts to block the Asian country from advancing in technology and military sectors.

As per reports, Republican lawmakers in the House of Representatives have called Jensen to appear and testify before Congress about the affair on November 18.

In overnight activity on the Nasdaq, the shares were trading 4.41 percent lower, at $178.40, after closing Friday's regular trading 2.78 percent higher.