Nvidia shares are lower on Monday after the company announced an internal investigation into CEO Jensen Huang’s relationship with an alleged Chinese spy.
Shares of the chipmaker fell more than 5% in Monday trade, and were down nearly 6% around noon.
The internal probe, which will be overseen by outside independent counsel and a committee of independent directors, followed a media report that Huang had a close relationship with a Chinese businesswoman who allegedly passed information to Beijing.
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“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,” Nvidia’s board said in a statement on Sunday.
The board added that “Jensen fully supports the review and has committed to cooperating with it,” adding that the directors have “confidence in Jensen and his leadership team.”
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Huang, in a separate statement on Sunday, apologized for being unfaithful to his wife. He did not elaborate on the relationship.
“My actions hurt her and our children,” he said. “There is no excuse for what I did. I am deeply sorry.”
Huang said he will support and cooperate fully with the independent investigation into the national security concerns, adding that “I love our country and our company. I am committed to protecting Nvidia and supporting America’s national security. I am proud and grateful to be an American.”
The Chinese government rejected allegations that its intelligence agencies ran a spying operation that targeted Huang, calling it a smear campaign against China.
“The so-called Chinese spy allegation is unsubstantiated. it is nothing but smears against China,” said Chinese Foreign Ministry spokesperson Guo Jiakun during a regular news briefing on Monday.
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President Donald Trump on Sunday discussed the report and when asked by reporters whether he regretted not acting on intelligence about the alleged spying said that “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 also praised Huang’s leadership, saying, “I hope everything’s fine then. He’s done such an incredible job.”
He was asked if Huang would join him on an upcoming trip to Asia and the president replied, “I don’t know, but I’d certainly take him.”
“I haven’t heard he’s done anything wrong. He dealt with somebody but, you know, so does everybody else,” Trump added.
Reuters contributed to this report.
