Nvidia investigates CEO Huang affair as Megaspeed chip buyer enters spotlight

Nvidia's board investigates CEO Jensen Huang's alleged affair with a Singapore executive believed to be a Chinese intelligence asset, as Megaspeed faces scrutiny over chip diversion claims.

Nvidia's board has launched an independent investigation into CEO Jensen Huang's alleged relationship with Alice Huang, executive at Singapore-based Megaspeed. U.S. intelligence officials believe she is a Chinese intelligence asset, according to The New York Times.

Megaspeed sells access to Nvidia GPUs hosted in data centers across Southeast Asia, advertising itself as a core partner of Nvidia's computing power cloud business. The company has previously faced scrutiny over whether its GPUs were redirected to China, which Megaspeed denies. Inspections by the U.S. Bureau of Industry and Security, Malaysia's Ministry of Investment, Trade and Industry, and Nvidia itself found no evidence of illicit chip transfers.

The investigation adds pressure on Nvidia, which saw its shares decline 4.27% in delayed trading to $178.67. The U.S. has banned Nvidia's best chips from going to China, though remote access remains a separate question. Alice Huang also goes by Huang Le and helped establish Megaspeed in 2023, shortly after the first chip export bans targeting China during the Biden administration. Market analysts warn the scandal could further impact Nvidia's already volatile stock performance amid ongoing AI industry scrutiny.

A House Select Committee on China has requested Huang's attendance at a November 18 briefing to determine 'the extent to which U.S. national security has been placed at risk.' Singapore's government has stated it had not investigated Alice Huang's alleged intelligence ties or her relationship with Huang.