Moolenaar Demands Congress 'Get to the Bottom' of Nvidia CEO's Ties to Alleged Chinese Spy as Company Loses $200B in Value

Since Nvidia's board opened an independent probe of CEO Jensen Huang on Sunday, the pressure has moved from the boardroom to Capitol Hill. Moolenaar, R-Mich., told CNBC's "Squawk Box" today, Nov. 10, that Congress needs to "get to the bottom" of Huang's relationship with Alice Huang, the Megaspeed executive U.S. intelligence agencies reportedly identified as a Chinese intelligence asset.

The two Huangs are not related.

Moolenaar's three questions

Moolenaar chairs the House Select Committee on China. He laid out what he wants answered:

• Did Huang share privileged information with a Chinese spy?
• Was Huang influenced to lobby against restrictions on chip sales to China?
• Was China given preference in buying Nvidia's limited supply of advanced chips?

Huang has openly lobbied to loosen trade restrictions on Nvidia sales to China. Moolenaar framed the questions as things that need answers, not findings.

He also warned the company's internal review has to be real. "If it becomes less of an investigation, more of damage control, that's not going to work because people have to have confidence," he said.

He called the Chinese Communist Party "a foremost adversary" and described a "Cold War race with technology." "We cannot allow the premier company at the forefront of this to, in some way, be irresponsible," he said.

Bipartisan demand for a briefing

Scrutiny has grown since lawmakers returned to Washington on Monday. House Minority Leader Hakeem Jeffries, D-N.Y., said at a press conference that "we're going to need a full briefing specifically as it relates to the Nvidia issue so we can all get to the bottom of what has happened and what the implications are in terms of national security."

Moolenaar, Foreign Affairs Chairman Brian Mast, R-Fla., and Intelligence Committee Chairman Rick Crawford, R-Ark., sent Huang a letter on Nov. 5. It invited him to an in-person joint briefing on Nov. 18, one day after Nvidia's scheduled third-quarter earnings report.

The three Republicans wrote that "recent reports raise significant national security concerns regarding the PRC's access to sensitive U.S. technology and information." They are also seeking details on Nvidia's security protocols against foreign espionage.

What Nvidia and Huang say

Huang admitted the affair in a message to employees. "I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did," he wrote. He said he took "full responsibility." His statement did not address the spying allegations.

Earlier this month, after the New York Times first reported a "close" relationship, Huang called the story "groundless speculation." He said his interactions were "related to Megaspeed, and it was completely normal and not unusual."

Nvidia's board said it "has no reason to believe that either national security or Nvidia secrets were compromised." It said the independent committee, working with outside counsel, will examine "all available information." The board added that Huang supports the review and that it has confidence in his leadership.

Nvidia also said in a statement: "Meetings with customers are part of a CEO's job; Jensen talks with thousands of customer executives every year."

President Trump said Monday that Huang told him he "had no idea" the woman was a spy. "And I really believe him," Trump said. Trump said the FBI is looking into the matter. The New York Times reported that Trump was briefed on the intelligence findings about a year ago and did not act. Trump said he had been hearing about the allegations for some time but did not say when he was first told.

The Times also reported that U.S. officials initially did not believe Huang knew Alice Huang was allegedly gathering intelligence for China. It remains unclear whether that assessment has changed.

Megaspeed and the market

Megaspeed is a Singapore-based IT and cloud company under investigation for allegedly smuggling Nvidia GPUs into China. It has bought more than $2 billion in Nvidia hardware and has denied involvement in chip smuggling.

NBC News reports that Nvidia, the world's most valuable chipmaker, has lost roughly $200 billion in value amid the scandal, facing major stock market losses and growing scrutiny in Washington.

What comes next

Nvidia reports third-quarter earnings on Nov. 17. The congressional briefing is set for the next day.

It is unclear whether Huang will attend. Whether the board's independent committee produces findings before then is also unresolved.