President Donald Trump said Nvidia CEO Jensen Huang should remain in his post, while Tusk Ventures CEO Bradley Tusk called for Congress to investigate Huang’s relationship with Trump. Nvidia’s board has opened an independent inquiry, and the company’s shares fell about 4% on Monday as scrutiny of its governance, China business and political ties intensified.
Trump says Huang should remain CEO
Trump told reporters on Sunday that Huang should continue leading Nvidia, though he said he had not spoken with him about the matter. Trump called Huang “a decent person” and said people should hear his explanation. The comments amounted to limited support, rather than a full defense against the allegations.
In a memo to employees on Sunday, Huang acknowledged having had an extramarital affair. The woman, Alice Huang, is not related to him and previously held an executive role at Singapore-based data center company Megaspeed, an Nvidia customer.
U.S. intelligence agencies are reported to believe Alice Huang passed information to Beijing. The Chinese government called the allegation baseless. Nvidia said Huang’s interactions with customers were part of normal business. Information available so far has not established whether the relationship involved company business or confidential information, and the inquiry’s findings have yet to be released.
Congress and Nvidia’s board examine the matter
At least four lines of inquiry or review are underway, involving Congress, Nvidia’s board, law enforcement and intelligence agencies. Nvidia’s board has launched an independent investigation. Separately, three Republican committee chairmen in the House have asked Huang to attend a closed-door briefing on November 18.
Tusk has called for Huang to step aside temporarily during the investigation and urged the Commerce Department to bar Nvidia chip sales to China. He also wants Congress to investigate the relationship between Trump and Huang. If taken up in policy discussions, these proposals could affect Nvidia’s China sales and U.S. policy on exports of advanced chips. There has been no announcement of a new Commerce Department ban.
Nvidia shares drop about 4%
Nvidia, whose market value exceeds $4 trillion, fell about 4% on Monday. The board inquiry and other reviews have put investor attention on more than Huang’s personal affairs, including corporate governance, customer relationships and the potential policy implications for Nvidia’s China business.
Trump has publicly backed Huang’s continued tenure, while House lawmakers have requested his attendance at the November 18 closed-door briefing. The board’s independent inquiry is ongoing. No final findings have been announced on the intelligence allegations, Huang’s relationship with Trump or any effect on chip sales policy.