Nvidia preparing to oust CEO Jensen Huang after espionage scandal: WSJ

Nvidia's board of directors is preparing to consider removing Chief Executive Officer Jensen Huang following a growing scandal involving his reported relationship with a Chinese businesswoman suspected of being a spy, The Wall Street Journal reported Thursday, citing people familiar with the matter.

The report said the board could meet as soon as Thursday to discuss Huang's future at the world's leading artificial intelligence chipmaker.

The discussions come amid mounting scrutiny over whether the relationship exposed the company or US national security interests to foreign intelligence operations.

Huang, 63, acknowledged the affair in a message to Nvidia employees published on November 8, saying: "I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry."

He also said he was "fully committed to NVIDIA" and would work to regain the confidence of employees, shareholders and business partners.
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The controversy centers on Alice Huang, also known as Huang Le, a Chinese businesswoman and former executive at Singapore-based technology company Megaspeed International.

US intelligence officials suspect she was recruited to gather information for Beijing and influence Nvidia's approach to selling advanced artificial intelligence chips to China.

The allegations have not been independently established, and Alice Huang has not publicly commented on them.

Nvidia announced on November 8 that its board had launched an independent investigation into what it described as reports that Huang had been "the target of a foreign intelligence effort."

The company said it had "no reason to believe that either national security or NVIDIA secrets were compromised" but would examine all available information.

The board also initially expressed confidence in Huang and his leadership team.

The scandal has also drawn scrutiny over Megaspeed's business relationship with Nvidia and allegations that advanced chips were being routed to China in violation of US export restrictions.

Megaspeed has denied wrongdoing, saying there was "no evidence" of illicit chip transfers.

China has also rejected the espionage allegations, with its Foreign Ministry describing them as "nothing but smears against China."

The controversy has widened beyond Nvidia's internal investigation, with US authorities examining the national security implications and the company facing a shareholder lawsuit alleging that investors were misled about the relationship and its potential business risks.

Taiwan and Singapore have also drawn scrutiny into aspects of the case, although Singapore has said it is not investigating Alice Huang personally.

Huang co-founded Nvidia in 1993 and has led the company for more than three decades, making him one of the most influential figures in the global artificial intelligence industry.

The board's decision could therefore have significant implications for the company, which has become central to the global AI race.

As of Thursday, Nvidia had not publicly announced Huang's departure or confirmed the reported plan to remove him.