Jensen Huang admits affair with alleged Chinese spy as Nvidia opens investigation, stocks tank

The report of the chips going to companies with questionable credibility came from the New York Times. One of the companies that the chips were sold to included New Matrix, but the report found that the building tied to the company is empty. The owners of The Matrix also have ties to Chinese private equity firms that the US has put on a trading blacklist for allegedly helping Beijing acquire sensitive semiconductor companies.

Right after the report from the Times was published on Saturday, another shoe dropped for the company, when Huang wrote in an email to staff, "To my colleagues at NVIDIA, 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."

Nvidia's board has opened an independent investigation as there have also been reports that the woman Huang was seeing is a spy for China.

"Regarding the national security concerns raised in news reports, NVIDIA’s Board of Directors has initiated an independent investigation. I support the investigation and will cooperate fully. 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," he said in the letter concerning the reporting.

After Huang admitted to the affair with reporting about the suspected spy, the company's stock dropped over 5 percent in premarket trading on Monday. The admission from Huang followed reports that Huang had been the target of former Megaspeed International executive Alice Huang. US intelligence agencies suspect that she is a Chinese spy.

Nvidia's board said in a statement: "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."

President Donald Trump reacted to the news of the affair, backing the CEO and saying, "I have not spoken to him about it. I just know he's a fine person, but you never know what is going on."