By Sumedha Mukherjee and Chris Thomas
Nov 8 (Reuters) - Nvidia said on Sunday it is probing whether CEO Jensen Huang has been the target of a foreign intelligence effort, after a media report alleged he had a close relationship with a Chinese businesswoman who passed information to Beijing.
Huang admitted in a message to employees that he had been unfaithful to his wife and took "full responsibility" for his actions, while Nvidia said the CEO was committed to continuing to lead the company without interruption.
The New York Times reported last month that Huang had a relationship with Alice Huang, a former executive of Singapore-based company Megaspeed, whom US authorities were investigating.
US authorities have scrutinized Megaspeed, which buys AI chips from Nvidia, over suspicions it helped Beijing gain access to advanced AI chips that are barred from shipment to China.
"The NVIDIA Board is initiating an independent investigation in light of recent reporting that founder and CEO Jensen Huang has been the target of a foreign intelligence effort. A committee of independent directors, assisted by outside independent counsel, will oversee the investigation," Nvidia said.
The company said on Sunday that, while its board has no reason to believe that either US national security or Nvidia secrets were compromised, its inquiry will examine all available information.
Huang fully supports the review and has committed to cooperating with it, it added.
The investigation adds to pressure on Nvidia at a time investors are already pulling back from uncertainty over the sustainability of the AI market, in which the company is a leader. The $4.5 trillion chipmaker's shares have given up all their gains this year amid a broader tech market rout triggered by worries over AI sustainability.
Huang admitted to having been unfaithful to his wife, saying, "My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry."
Addressing his colleagues, board, partners and shareholders, Huang said: "My responsibility is to serve you and be worthy of your trust. I have fallen short of that responsibility. I am fully committed to NVIDIA and will work to earn back your confidence."
Top Republican lawmakers in the US House of Representatives have called on Huang to brief Congress this month about the report.
The report raises "significant national security concerns regarding (China's) access to sensitive US technology and information," the lawmakers said in a letter dated November 4. "It is vital that Congress determines the extent to which US national security has been placed at risk," they added.
Huang, who founded Nvidia in 1993, said that he was "committed to protecting NVIDIA and supporting America's national security."
Nvidia had earlier said that Huang talks with "thousands of customer executives every year," and that cloud customers in Asia receive ordinary business information, not sensitive Nvidia trade secrets or anything tied to US national security.
(Reporting by Sumedha Mukherjee in Bengaluru, Chris Thomas in Mexico City; Editing by Bill Berkrot, Chris Reese and Nia Williams)
