Nvidia’s reported spy scandal is shaking markets and rattling the tech world, raising urgent questions about how close foreign agents can get to America’s most powerful corporate leaders.
Dr. Michael Wallace, a professor at Tulane University and retired military intelligence officer with 20 years of experience, said foreign intelligence services study targets’ personal lives and interests to find ways to build trust and gain access.
And it’s become increasingly clear that business leaders worldwide could potentially provide access or information about the U.S. government if placed correctly. Nvidia CEO Jensen Huang was on Air Force One with President Donald Trump in May as part of the delegation during a summit with Chinese leader Xi Jinping in Beijing. He has also visited the White House a handful of times to discuss the administration’s artificial intelligence (AI) agenda and Nvidia’s powerful chips and selling them to approved Chinese customers.
HOW US CEOS QUIETLY TEAMED UP WITH TRUMP TO GAIN LEVERAGE OVER CHINA
There are now active investigations into whether U.S. national security or company secrets were compromised by Huang’s reported extramarital affair with a businesswoman allegedly recruited by China’s Ministry of State Security to target the Nvidia CEO.
“The goal of human intelligence is to get somebody close to a source that can either elicit information or obtain information from a person,” Wallace told Fox News Digital.
That access could reveal more than technical secrets, Wallace said. Someone close to a CEO might learn about business relationships, product plans, upcoming chip releases or conversations with government officials.
The allegations revive longstanding U.S. concerns about Chinese corporate espionage and efforts to gain access to American companies’ sensitive technology and business information. Those concerns carry added weight in Nvidia’s case because its advanced chips are central to the artificial intelligence industry and the U.S.-China technology competition.
NVIDIA CEO JENSEN HUANG APOLOGIZES AS FIRM PROBES AFFAIR WITH ALLEGED SPY
“What makes it unique is that it happened this high up to this person,” Wallace said. “That’s what boggles my mind.”
Nvidia’s board has launched an independent investigation into reports about Huang’s relationship with Alice Huang, a former executive at Singapore-based cloud computing company Megaspeed. Alice, despite sharing a last name, has no relation to the Nvidia CEO.
The New York Times reported that U.S. officials suspected Alice had gathered information for Beijing. Nvidia has said Huang meets with thousands of customer executives each year and that meetings with her were not unusual.
The news caused shock waves across business and government, and is leading to calls for Huang to resign.
HOUSE REPUBLICANS DEMAND ANSWERS FROM NVIDIA CEO OVER REPORTED CHINESE SPY TIES
Huang apologized to Nvidia employees Sunday for being unfaithful to his wife, writing, “There is no excuse for what I did. I am deeply sorry.” He did not identify the woman or describe the relationship in his message.
The board said independent directors, assisted by outside counsel, would oversee the inquiry. It said it had “no reason to believe that either national security or NVIDIA secrets were compromised,” while adding that the investigation would examine all available information. Nvidia said Huang would remain CEO during the review and had committed to cooperating.
Amy Kremer, chairwoman of advocacy group Humans First, said Huang should resign and called for federal investigations.
“He is compromised,” Kremer told Fox News Digital. “We have to get to the bottom of this and let’s hope that he’s the only one.”
Kremer also called for Nvidia to lose government contracts until Huang leaves the company. She criticized his advocacy for easing restrictions on chip sales to China, arguing the reported relationship raises national security concerns.
The allegations have not established that Huang knowingly shared information or that Nvidia’s technology was compromised.
Trump said Monday he spoke with Huang and believed the Nvidia CEO “will be in good shape,” while expressing amazement at the allegations.
Trump also said he did not think he would raise the matter with Xi.
The White House declined to elaborate on whether the Trump administration would continue engaging with Huang, referring Fox News Digital to Trump’s previous comments.