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The largest American chip manufacturer, Nvidia, announced an independent investigation into reports that its chief executive Jensen Huang entered into a romantic relationship with a woman who may be working for Chinese intelligence agencies. Huang himself admitted that he cheated on his wife.
Nvidia said its board of directors has no reason to suspect that any classified information was leaked or that there was a threat to US national security. The firm added that Huang plans to continue to serve as its director.
Nvidia said in a statement that the company has decided to launch an independent investigation "in light of recent reports that our founder and chairman Jensen Huang has been targeted by a foreign intelligence operation."
“The Board of Directors prioritizes the national and economic security of the United States. It is critical to the interests of Nvidia and its shareholders, the firm says. “While the board has no reason to believe that national security or sensitive Nvidia data was compromised, all available information will be reviewed by the board-designated investigation.”
What was said in publications about the novel
Huang's affair with an alleged Chinese spy was reported by the New York Times.
According to her, the director of Nvidia entered into a romantic relationship with a woman named Alice Huang (she is the namesake of the head of the American company, and not his relative).
Alice Huang is associated with Singapore-based Megaspeed, which operates data centers and buys chips from Nvidia.
According to sources cited by the New York Times, American intelligence agencies monitored Alice Huang (also known as Huang Le) and determined that she was acting on behalf of the Chinese government.
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The British Financial Times notes that "according to the US intelligence community, Alice Huang was recruited by China's Ministry of State Security."
The FT publication also says that American intelligence agencies compiled a report according to which Jensen Huang entered into a romantic relationship with Alice Huang. Earlier, photographs appeared on social networks in which the head of Nvidia appears together with Alice Huang, the publication writes.
According to the New York Times, American intelligence agencies began monitoring Alice Huang more than a year ago and found out that she was exchanging messages with Jensen Huang. US intelligence officials believed the interaction was romantic in nature.
About a year ago, US President Donald Trump was reported about the surveillance of Alice Huang, writes NYT. According to the FT, a report about the connection between the head of an American company and an alleged Chinese spy was distributed among senior US officials shortly before Trump's visit to Beijing and his meeting with Chinese President Xi Jinping in September this year.
It remains unclear exactly what information Alice Huang may have transmitted to Beijing, how valuable this data was, and exactly when she might have begun collecting information.
Alice Huang did not respond to The New York Times' request for comment.
China has previously rejected espionage allegations against the Nvidia executive, calling them "baseless speculation."
What Jensen Huang himself said
Earlier, Jensen Huang, in an interview with Bloomberg, commented on the data on the American investigation against a representative of the company Megaspeed. He, in particular, asserted: “Our relationship, our contacts, concerned the Megaspeed company, and they were completely normal, there was nothing unusual in them.”
However, this weekend the head of Nvidia admitted that he cheated on his wife and noted that he “takes full responsibility” for it.
“I cheated on my wife. My actions hurt her and our children. There is no excuse for my actions. I offer my deepest apologies,” writes Jensen Huang.
He continues: “Nvidia's board of directors has launched an independent investigation into the national security concerns raised in media reports. “I support this investigation and will cooperate fully with it.”
“I love our country and our company. I am committed to protecting Nvidia and supporting American national security. I'm very proud and grateful to be an American."
What is the significance of Nvidia and the role of Jensen Huang
Nvidia is one of the largest and most valuable companies in the world. As a microprocessor maker, it plays a central role in the development of artificial intelligence technologies that rely on powerful computer chips. Nvidia's market value is currently estimated at $4.5 trillion.
Jensen Huang has led Nvidia for more than 30 years.
As BBC correspondents note, Huang saved this company several times when it was on the verge of bankruptcy, and it was he who bet on artificial intelligence - long before the global AI boom of recent years.
Initially, Nvidia microprocessors were mainly intended for computer games, but Huang decided to develop them specifically taking into account the prospects for the development of AI. In recent years, this decision has led to a sharp increase in the company's capitalization.
The current scandal is a serious blow to Jensen Huang, who is considered a workaholic, a perfectionist and a person who always demands the highest standards from his employees, our correspondents note.
Why Nvidia is important for China
Last week, three members of the US Congress wrote to Huang asking him to testify about his alleged relationship with Alice Huang. They asked the Nvidia executive to talk about “security protocols designed to prevent foreign hostile espionage.”
China, trying to compete with the United States in the field of artificial intelligence, is interested in buying microprocessors made by Nvidia. However, Washington has imposed export restrictions on such products in the past, causing tensions with China.
In particular, the US authorities prohibited the supply of one of the most advanced processors, Nvidia H200, to China. The reason was fears that this could help Chinese companies surpass American ones in the field of artificial intelligence.
However, in January of this year, the Trump administration allowed the supply of H200 to China under certain conditions.
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