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Nvidia's board has launched an independent investigation into CEO Jensen Huang's relationship with Alice Huang, following reports linking her to an alleged Chinese espionage operation. The inquiry comes as US lawmakers demand answers about possible national security risks and China's access to advanced American technology.
Meanwhile, the Financial Times reported that Alice Huang sought investors for a Southeast Asian data centre project involving Nvidia chips and potential business from Alibaba.
The board announced its investigation on Sunday after reports raised questions about Huang's connections with the former Megaspeed executive. Nvidia said it had no reason to believe anyone had compromised company secrets or national security. Nevertheless, directors plan to examine the available information.
The developments have also drawn attention to US export restrictions on advanced artificial intelligence chips. Lawmakers from both parties are seeking further scrutiny of the allegations and the government's knowledge of the relationship.
Alice Huang and business partner Kang Wei approached prospective investors with plans for a multimillion-dollar data centre in Southeast Asia. They reportedly claimed they could obtain Nvidia's advanced graphics processing units, known as GPUs.
The pair also identified Chinese technology company Alibaba as a potential customer. The proposed arrangement drew attention because US export controls restrict certain advanced chip sales to Chinese companies. Yet overseas data centres can offer computing services through leasing agreements, subject to applicable restrictions.
Financial records revealed earlier dealings between Alibaba and Megaspeed. In June 2024, Alibaba's Singapore subsidiary, Apex Enterprise Solutions, provided a loan to Speed Matrix, Megaspeed's Malaysian subsidiary.
Speed Matrix pledged its entire business as collateral. During 2024, Megaspeed's balance sheet expanded from USD 33 million to USD 3 billion, largely through transactions involving subsidiaries.
Megaspeed has denied any illicit activity involving Nvidia chips. The reported financial arrangements do not establish wrongdoing or prove that restricted technology reached Chinese customers.
The chip dealings emerged alongside allegations involving Jensen Huang's personal relationship with Alice Huang. On Sunday, the Nvidia chief executive disclosed to employees that he had been intimate with her.
Nvidia's board subsequently announced an independent investigation into his involvement with the former Megaspeed executive. Although the board addressed the reported security concerns, its public statement did not mention the affair.
The company maintained that it had no evidence suggesting a compromise of national security or confidential information. It also confirmed that Jensen Huang supported the inquiry and would cooperate fully.
Nvidia told CNBC that the investigation would not interrupt Huang's leadership. Meanwhile, lawmakers from both political parties increased pressure for congressional scrutiny.
Senator Chris Coons called for an investigation and questioned what the Trump administration knew about the alleged Chinese intelligence operation.
Separately, three Republican House committee chairs requested a closed-door briefing with Jensen Huang on November 18. Their letter cited national security concerns involving China's access to sensitive US technology.
The proposed briefing would take place one day after Nvidia's scheduled third-quarter earnings report.
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The investigation comes as separate reporting raises questions about US oversight of advanced chip exports to China.
According to The New York Times, the US Commerce Department reviewed and approved dozens of Chinese companies to handle Nvidia's H200 AI processors.
The companies reportedly included Baidu, BYD, Tesla Shanghai and ZTE. Some had previously appeared on US trade restriction lists.
Investigations into certain approved businesses also revealed questions about their operations. Reporters examining Beijing-based New Matrix encountered empty offices, an unclear ownership structure and difficulties verifying its business presence.
These findings raised concerns about the checks authorities conduct before granting companies access to restricted technology. They also brought renewed attention to the possibility of companies obtaining advanced computing capacity through overseas arrangements.
The central question remains whether existing safeguards can prevent restricted Chinese entities from gaining access to advanced US technology.
Nvidia's investigation follows reports linking Alice Huang to a proposed data centre project and allegations of Chinese espionage. Lawmakers are seeking answers about Jensen Huang's relationship with her and potential national security risks. Meanwhile, separate reporting has raised concerns about US oversight of advanced chip access. No compromise of Nvidia's secrets has been established.