Nvidia (NVDA) board opens independent probe after Jensen Huang admits he was unfaithful to his wife

Nvidia (NVDA) said on Sunday, November 8, that a committee of independent directors will investigate reporting that chief executive Jensen Huang was the target of a foreign intelligence effort. Outside counsel will assist the committee.

In a separate message to the company, Huang wrote, "I was unfaithful to my wife," and said he would cooperate fully with the investigation. The board said it has "no reason to believe that either national security or NVIDIA secrets were compromised," but that the inquiry "will examine all available information."

The board expressed confidence in Huang and his leadership team and said it would provide updates "as appropriate." It gave no timeline. Nvidia also told CNBC that Huang "is committed to continuing to lead NVIDIA as CEO without interruption."

What Huang's message says

In his message, Huang apologized to his wife and children, as well as Nvidia's employees, board, partners, and shareholders. "You deserve better from me," he wrote. "I have fallen short of that responsibility." He also said he was committed to protecting Nvidia and supporting US national security.

Huang didn't name the woman in his message. CNBC reported that the relationship he acknowledged was with Alice Huang, a former Megaspeed executive whom US intelligence reportedly believes was recruited by China's Ministry of State Security. The two Huangs aren't related.

The board's statement didn't mention the affair, and Huang's message didn't mention Megaspeed. Neither statement addressed Nvidia's October 29 response, when a spokesperson called Huang's interactions with Alice Huang "not unusual or unexpected."

Secretary of State Marco Rubio oversaw the creation of a secret memo about the relationship that went to senior US officials last spring, The New York Times reported on Sunday. The Times first reported on the memo on November 6. It hasn't been released, and no report we've reviewed says anyone has been charged.

Lawmakers from both parties want answers

Three House Republican committee chairmen asked Huang in a letter dated November 4 to give them a closed-door briefing on November 18, or to propose another date by November 11. Democrats are pressing too. Sen. Chris Coons of Delaware, who is in line to chair the Senate Foreign Relations Committee when Democrats take control of the Senate in January, wrote on X on Saturday that "Congress will investigate and get answers." Rep. Seth Magaziner of Rhode Island called for Commerce Secretary Howard Lutnick to testify alongside Huang.

Sen. John Cornyn, a Texas Republican, called a separate Times report "outrageous." That report found that the Commerce Department had cleared a Chinese firm with little sign of operations at its listed address to assemble Nvidia chips.

Nvidia has told investors it depends on its executives

Huang co-founded Nvidia in 1993 and has run it ever since. In its annual report filed in February, Nvidia wrote that "we are highly dependent on the services of our longstanding executive team," and that failure to plan for smooth executive transitions "could hinder our strategic planning, execution, and long-term success."

Nvidia shares trade Monday for the first time since the statements

Nvidia shares closed at $186.64 on Friday, November 6. Both statements came out on a Sunday, so Monday, November 9, is the first trading session since. The House chairmen asked Huang to reply by November 11, Nvidia reports fiscal third-quarter results on November 17, and the requested briefing is November 18.

Cover photo: Peter Dasilva / European Union, 2024, via Wikimedia Commons, CC BY 4.0, cropped.