According to a report published by The New York Times on October 29, Alice Huang, also known as Huang Le, a former Megaspeed executive, had developed a close personal relationship with the Nvidia chief. The two are not related.
The report alleged that US intelligence officials had concluded that Alice Huang was passing information to Beijing. However, these allegations have not been independently verified by Reuters.
Megaspeed had already attracted scrutiny from US authorities over suspicions that it facilitated the transfer of Nvidia’s advanced AI chips to China, despite American export restrictions.
The New York Times further reported that US President Donald Trump had been briefed on the intelligence findings approximately a year earlier but had decided against taking action.
Nvidia CEO Acknowledges Personal Misconduct
Amid the controversy, Jensen Huang reportedly acknowledged in a message to employees on Sunday that he had been unfaithful to his wife, accepting full responsibility for his personal conduct.
Following the disclosure, Nvidia announced that a committee of independent directors, supported by external legal counsel, would examine the circumstances surrounding the matter.
The company maintained that its board had no reason to believe US national security interests or Nvidia’s confidential business information had been compromised.
Nvidia also stated that Huang supported the independent review and would cooperate fully with the investigation.
Market reports indicated that Nvidia shares declined following the disclosure, although the precise extent of the movement was not specified.
Nvidia Rejects Allegations of Improper Business Dealings
Nvidia has denied suggestions that Megaspeed received preferential treatment or access to sensitive company information.
A company spokesperson maintained that Megaspeed was handled in the same manner as other regional customers and that Huang’s interactions with Alice Huang were not unusual in the context of ordinary business relationships.
The company further asserted that previous allegations concerning the illegal diversion of AI chips had been thoroughly investigated and disproved.
China Dismisses Espionage Allegations
China’s Foreign Ministry spokesperson Guo Jiakun rejected the allegations on October 30, describing the report as groundless speculation intended to discredit China.
Beijing subsequently reiterated that claims involving Chinese intelligence activities were unsubstantiated.
Meanwhile, senior Republican lawmakers in the US House of Representatives have reportedly sought briefings from Jensen Huang over potential national security implications.
Controversy Emerges Amid US-China Technology Rivalry
The developments come as Nvidia remains one of the world’s most valuable technology companies, with its market capitalisation reported at approximately $4.5 trillion as of November 6.
Since 2022, the United States has imposed restrictions on exports of advanced AI semiconductors to China, citing concerns that such technologies could strengthen Beijing’s military and intelligence capabilities.
The controversy also emerges ahead of anticipated discussions between President Donald Trump and Chinese President Xi Jinping, with semiconductor trade and technological competition remaining major issues in US-China relations.
Neither Alice Huang nor Megaspeed had responded to requests for comment, according to the reports.
The intelligence allegations remain disputed and unproven publicly, and Nvidia’s independent review has not established any wrongdoing involving national security or confidential company information.
Latest Development: Shareholder Lawsuit Filed Against Nvidia
In a further development on November 9, Nvidia and Jensen Huang were named in a proposed class-action lawsuit filed in a federal court in San Jose, California.
The lawsuit alleges that shareholders were misled because Huang’s reported relationship with Alice Huang and the associated national security concerns were not adequately disclosed.
According to Reuters, Nvidia shares closed 4.3% lower on Monday, wiping approximately $190 billion from the company’s market capitalisation. The allegations in the lawsuit have not been established in court.
