What we know — and what we don’t — as Nvidia investigates an alleged spy plot involving its CEO

Stunning allegations of a spy plot have prompted Nvidia to investigate whether its founder and CEO, Jensen Huang, was the target of a “foreign intelligence effort.”

Huang on Sunday admitted to having an extramarital affair, and acknowledged that news reports surrounding the relationship and potential national security concerns led Nvidia’s board to investigate. He and his chipmaking company did not name the person he had been intimate with, but The New York Times identified her as business executive and Chinese citizen Alice Huang. The outlet said U.S. intelligence determined she was gathering information for Beijing.

China’s Foreign Ministry dismissed the spying allegations on Monday, saying they amount to a smear campaign against Beijing.

Many questions remain unanswered. But the scandal is already bringing turmoil to California-based Nvidia, whose high-end chips have emerged as the leading building blocks for artificial intelligence. Huang himself has become a key face in the AI race, both across the industry and often on President Donald Trump’s side in Washington.

Here’s what we know.

What Nvidia has said about its investigation

On Sunday, Nvidia announced that its board was initiating an independent investigation. The company cited recent reporting about Huang being “the target of a foreign intelligence effort.”

Nvidia’s board said it had “no reason to believe” that either national security or Nvidia secrets were compromised, but that its inquiry would examine all available information. The company added that Huang would remain CEO — and that he had committed to cooperating fully during the investigation.

“Today’s news will not slow Nvidia,” company spokesperson John Rizzo said in a statement. “Jensen is committed to continuing to lead Nvidia as CEO without interruption.”

Jensen Huang apologizes for affair

In a separate email to Nvidia employees, later also published by the company, Huang apologized for his affair.

“I was unfaithful to my wife. My actions hurt her and our children,” Huang wrote, adding that he was “deeply sorry” and that his colleagues also “deserve better” from him.

Huang also reiterated his support for the board’s investigation. “I love our country and our company. I am committed to protecting NVIDIA and supporting America’s national security,” he said Sunday.

Huang, 63, founded Nvidia more than three decades ago. He and his wife, Lori, reportedly have two children who both work at Nvidia.

China rejects spy allegation claims

China has denied that it engaged in an attempt to ensnare Nvidia’s CEO.

“The so-called Chinese spy allegation is unsubstantiated. It is nothing but smears against China,” Ministry of Foreign Affairs spokesperson Guo Jiakun said during a routine briefing Monday.

The New York Times reported that Alice Huang was a former executive of a Singapore-based data center company called Megaspeed International, whose website prominently touts its partnership with Nvidia. Last year, Megaspeed faced claims it was illicitly shipping advanced Nvidia computer chips into China — which the company in December maintained there was “no evidence” of.

Megaspeed bought more than $4.8 billion worth of Nvidia chips over the past two years, according to the Times. Last month, the outlet reported that U.S. intelligence agencies discovered Nvidia’s Huang had developed a close relationship with Alice Huang — and determined she was feeding information directly to Beijing.

Huang’s relationship with Washington

Beyond rising to fame in the AI space (often accompanied by his signature leather jacket), Huang has maintained a close relationship to Trump throughout the Republican president’s second term in office. He’s among tech CEOs who have dined at the White House, and even traveled on Air Force One.

Trump has called Huang “smart” and “amazing,” repeatedly insisting he accompany him on foreign trips. After news of Nvidia’s investigation broke, the president said on Sunday the two hadn’t spoken but that he hoped “everything’s fine.”

He continued to praise Huang, including when asked whether he wished he had acted on intelligence when he was briefed about spying.

“I think he’s an honorable guy. I think he probably has an excuse for it. He’s done an amazing job for our country,” Trump told reporters. He added that he was still open to taking Huang on his trip to Asia next week.

Questions of wider ramifications for trading AI chips

Nvidia is one of the world’s most valuable companies. And it’s become a leader for making chips that power AI.

Huang has lobbied Washington to loosen limits on sales of Nvidia chips to China in recent years, winning Trump’s approval for selling its H200 chips in January. Those are not the company’s most cutting-edge chips, but are still powerful. Nvidia has said in regulatory filings that it has sold only a small amount to China, as such sales are also restricted by the Chinese government.

Nvidia’s investigation into whether Huang was a target of foreign intelligence is still ongoing, but some analysts suspect that the allegations will strengthen calls for stricter export controls with China.

“The high-profile nature of these allegations could make it increasingly difficult for Washington to avoid a response,” analysts at Raymond James wrote in a Sunday note.

They said the espionage reports will likely bolster congressional support for legislation aimed at further restricting semiconductor and chipmaking equipment sales to China, which could in turn renew strain over trade between the two countries overall.

Shares of Nvidia sank nearly 5% as of midday Monday. Stocks for other AI-related companies, including Advanced Micro Devices and Coreweave, meanwhile climbed higher.

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AP Writers Rio Yamat, Michelle L. Price and Huizhong Wu contributed.