Source: Sharecast
In a memo sent to employees on Sunday, Huang - who has led the business for more than 30 years - admitted: "I owe my family and all of you an apology. 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.
"I love our country and our company. I am committed to protecting Nvidia and supporting America’s national security."
Separately, Nvidia confirmed the board was launching an independent investigation "in light of recent reporting that…Huang has been the target of a foreign intelligence effort".
Neither the company nor Huang named the woman. However, she was widely reported to be Alice Huang, an executive at Singapore-based Nvidia customer Megaspeed. US officials believe she was recruited by China’s Ministry of State Security intelligence agency.
Donald Trump told reporters he had not spoken to the Nvidia boss since news of the probe emerged, but said: "I just know he’s a fine person, but you never know what’s going on." According to the New York Times, Trump was first briefed on intelligence concerns about Alice Huang in late October.
A spokesperson for China’s Foreign Ministry said that allegations "about Chinese spies are entirely groundless, speculative and intended to smear and malign China".
Nvidia is one of the world’s most valuable companies, with a market cap of more than $4trn. A leader in high-tech semiconductors, it has helped establish America as a dominant force in artificial intelligence. However, Washington has imposed various export controls on the sector to keep the tech out of China, as it looks to maintain America's competitive advantage and protect national security. It means Nvidia is effectively locked out of the lucrative market, and Jensen Huang has long been a vocal advocate for closer US-China dialogue on the development of AI.
Nvidia said: "The board prioritises US national and economic security, which is paramount to the interests of Nvidia and its shareholders. 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. Jensen fully supports the review and has committed to cooperating with it."
As at 1130 GMT, shares in Nvidia were down 5% in pre-market trading.
Neil Wilson, Saxo UK investor strategist, said: “The AI trade hits full meltdown mode Thursday, rebounds Friday then over the weekend one of its chief protagonists is caught up in a Chinese honey trap story.
“Markets are trying to figure out what this means for arguably the world’s most important company right now. If Huang is forced to leave, what happens to Nvidia? Huang is kind of irreplaceable for US leadership in AI. There’s no upside from this. We just need to wait and see what the investigation throws up.”
Dan Coatsworth, head of markets at AJ Bell, said: “Even if Huang is found not have discussed any confidential information with the woman in question, the affair is not a good look for a company that prides itself on family-based cultural values.
“Yet one could see why Nvidia’s board might be keen to not lose him. [Huang] has been the architect of Nvidia’s success, making it the go-to place for AI chips and shareholders seriously rich along the way. He is the face of Nvidia and many shareholders big and small might prefer him to stay put if it means a continuation of the current strategy.”