NVIDIA Board Opens Independent Inquiry Into Reports About CEO Jensen Huang

NVIDIA shares fell about 6% in early U.S. trading on Monday after the chipmaker’s board opened an independent investigation into reports that co-founder and CEO Jensen Huang was the target of a foreign intelligence effort. The shares had fallen as much as 8% earlier in the session, Reuters reported.

A committee of independent directors, assisted by outside lawyers, will oversee the inquiry. The board said it had no reason to believe U.S. national security or NVIDIA’s confidential information had been compromised and expressed confidence in Huang and his leadership team. Huang said he would cooperate fully.

What prompted the inquiry

The investigation follows a New York Times report that Huang had a relationship with a former executive at Singapore-based Megaspeed whom U.S. intelligence officials assessed was working for China. Beijing rejected the allegation. In a message to NVIDIA employees, Huang acknowledged being unfaithful to his wife and did not identify the other person.

Why it matters beyond NVIDIA

Huang has led NVIDIA for more than three decades and helped turn a graphics chip company into a leading supplier of the processors used to train and run AI models. He also plays a personal role in NVIDIA’s relationships with major customers and governments. The inquiry puts that reliance on its founder in focus at a time when Washington restricts China’s access to some of the company’s most advanced chips.

So far, South Korea’s deputy science minister says the government expects contracted NVIDIA chip deliveries to proceed without disruption. NVIDIA has scheduled its quarterly earnings call for November 17, the next date on the company’s calendar for investors looking for an update on chip demand and customer orders.