Nvidia shares fell nearly 7% in premarket trading Monday after the company opened an investigation into CEO Jensen Huang.
Nvidia said Sunday that its board was investigating whether CEO Jensen Huang had been targeted in a foreign intelligence operation, following a media report alleging he had a close relationship with a Chinese businesswoman who passed information to Beijing.
In a statement Sunday, Nvidia told investors:
“The NVIDIA Board is initiating an independent investigation in light of recent reporting that founder and CEO Jensen Huang has been the target of a foreign intelligence effort.
A committee of independent directors, assisted by outside independent counsel, will oversee the investigation.
The Board prioritizes U.S. national and economic security, which is paramount to the interests of NVIDIA and its shareholders.
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.
Jensen fully supports the review and has committed to cooperating with it.”
It was reported last month that Huang had a relationship with a former executive of the Singapore-based company Megaspeed, whom US authorities investigated and concluded was a Chinese intelligence asset.
US authorities have investigated Megaspeed, a buyer of Nvidia AI chips, over suspicions that it helped Beijing obtain advanced AI chips prohibited from export to China.
In a letter to employees Monday, Huang said:
“To my colleagues at NVIDIA, including those I have worked alongside for decades, and to our board, partners, and shareholders around the world: you deserve better from me. Leading NVIDIA is the privilege of my life. My responsibility is to serve you and be worthy of your trust. I have fallen short of that responsibility. I am fully committed to NVIDIA and will work to earn back your confidence.
Regarding the national security concerns raised in news reports, NVIDIA’s Board of Directors has initiated an independent investigation. I support the investigation and will cooperate fully. I love our country and our company. I am committed to protecting NVIDIA and supporting America’s national security. I am proud and grateful to be an American.
My family bears no responsibility for my choices. I do. Please give them privacy.
Jensen”
China’s Foreign Ministry spokesperson Guo Jiakun said on Monday that the “so-called Chinese spy narrative” was unsubstantiated.
By CEO NA Editorial Staff
