Jensen Huang, chief executive of US chip giant Nvidia, has admitted to an extramarital affair with a Chinese businesswoman whom US intelligence agencies believed to be a spy working for Beijing. Nvidia’s board has launched an independent investigation. The case also involves a Singapore company suspected of helping to smuggle advanced chips into China.
1. What controversy is Huang embroiled in?
The New York Times reported that Jensen Huang had a close relationship with a Chinese businesswoman who calls herself Alice Huang. The two are not related. US intelligence agencies have determined that Alice was recruited by Chinese intelligence and passed information to Beijing. They suspect that Huang consequently became the target of a foreign intelligence operation.
Huang admitted on Sunday (8 November) to having had an extramarital affair and apologised to his wife, family and employees.
Nvidia’s board announced on the same day that it had formed an independent committee and hired external legal advisers to investigate whether Huang had been targeted by a foreign intelligence operation, and whether US national security or company secrets had been compromised. It stressed that there was currently no reason to believe such secrets had been leaked.
2. Why might China target Huang?
Nvidia’s advanced chips are critical to the development of artificial intelligence. Since 2022, the US has restricted exports of some high-end chips to China.
Through electronic surveillance, US intelligence agencies discovered that Alice had a close relationship with Huang and was passing information to Beijing.
This spring, senior US officials received an intelligence memorandum drafted under the supervision of Secretary of State Marco Rubio. It identified Alice as an intelligence operative for China’s Ministry of State Security whose tasks included gathering intelligence on Huang. She may also have sought to influence Nvidia to push for an easing of US restrictions on advanced chip exports to China.
3. What role does the Singapore company play?
Alice Huang was previously an executive at Singapore data company Megaspeed. The company primarily uses Nvidia chips to provide computing capacity for rent, with clients including Chinese technology giant Alibaba.
US officials suspect that Megaspeed may have helped smuggle advanced chips subject to US export controls into China. This means the case involves not only Jensen Huang’s personal relationship with a Chinese businesswoman, but also US chip export controls on China and potential national security risks.
The US Department of Justice has now taken over the federal investigation into Megaspeed. However, the smuggling allegations have not been substantiated, and there is no evidence that Nvidia’s secrets have been leaked.
The Chinese embassy in the US has denounced the espionage allegations as a smear.
4. How close is Huang to Donald J. Trump?
Huang successfully lobbied Donald J. Trump last year to ease the ban on chip sales to China. The two sides subsequently reached an agreement allowing Nvidia to sell chips one tier below its most advanced models to China, with the US government taking 25% of the revenue.
Nvidia also donated at least US$20 million (about S$25 million) to Trump’s White House ballroom fund.
The report said Trump was briefed on the intelligence about a year ago but took no action. Officials familiar with the matter believe the close relationship between the two men has hampered some US government efforts to restrict Nvidia’s chip sales to China.
5. What happens next?
Nvidia’s board will investigate the matter, with Huang remaining chief executive during the investigation.
Nvidia’s code of conduct requires employees to avoid conflicts of interest arising from personal relationships. Those who breach the code may face disciplinary action, including dismissal.
