Why Nvidia CEO's affair with alleged Chinese spy matters for AI race

Detailed summary

Nvidia CEO Jensen Huang has apologized for an affair with a woman the US believes was spying for China. The story could have profound implications for the world's most valuable company and the global AI race.

Nvidia chief executive Jensen Huang's admission to an affair with a woman whom US intelligence officials believe was working as a spy for China could have profound implications for the $5 trillion (€4.47 trillion) company.

The Financial Times first reported on Huang's affair with Alice H., an executive at Megaspeed, a Singapore-based customer of Nvidia, which has been suspected of trying to circumvent export controls to get advanced Nvidia chips into China.

The newspaper reported that the US government and its intelligence community believe she was recruited as a spy by China's Ministry of State Security intelligence agency.

To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video

US government officials drafted a memo about the allegations shortly before US President Donald Trump traveled to Beijing for a summit with Xi Jinping in May.

Huang's relationship with the alleged Chinese spy has exposed him and the company to criticism that it may have allowed China to obtain valuable trade secrets as Beijing tries to gain an edge in the race to develop advanced AI models.

Nvidia is initiating an investigation led by independent board members and an external law firm. It said in a statement that Huang "has been the target of a foreign intelligence effort."

"The board prioritizes US national and economic security, which is paramount to the interests of Nvidia and its shareholders," the company said Sunday. "While the board has no reason to believe that either national security or Nvidia secrets were compromised, the board's inquiry will examine all available information."

While US intelligence officials have not commented publicly on the claims, Trump — with whom Jensen Huang has a close relationship — has backed the Nvidia boss.

Opening of the article, excerpted from DW Business. To read the rest, open the article on the publisher's site.