What first emerged as tabloid gossip seems to be escalating into a dangerous scandal for graphics card titans Nvidia. In recent weeks, stories emerged that CEO Jensen Huang fell victim to a honeypot operation. One that could have contributed to $2 million worth of contraband breaking sanctions on China. Now the company says they will be launching a formal investigation into Huang as they become the center point of artificial intelligence.

Nvidia’s board of directors says it is launching an independent investigation into its CEO, Jensen Huang, after reports in The New York Times and the FT revealed that Huang was likely the target of an intelligence operation run by China.

“The NVIDIA Board is initiating an independent investigation in light of recent reporting that founder and CEO Jensen Huang has been the target of a foreign intelligence effort,” reads the company statement. “A committee of independent directors, assisted by outside independent counsel, will oversee the investigation.”

In late October, stories began to emerge that Huang was the target of a spy plot , allegedly having an affair with Megaspeed executive Alice Huang. Megaspeed, another Singapore-based company, has been under investigation since 2024 over the smuggling of Nvidia hardware into China, an increasingly common practice but breach of American sanctions nonetheless. According to the Financial Times , US intelligence alleges that the Megaspeed executive was acting directly on behalf of the Chinese government as a spy, raising concerns that sensitive intel may have been supplied on top of parts.

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