Nvidia CEO Jensen Huang defended selling chips to China weeks before Nvidia spy probe

Jensen Huang defended Nvidia's engagement with China in a Bloomberg interview filmed weeks before the company opened an independent intelligence inquiry. His remarks are drawing renewed attention amid allegations that a business executive cultivated ties with him for Chinese intelligence.

In Short

• Nvidia CEO Jensen Huang urged continued business with China despite tensions
• US intelligence suspects a former exec linked to Chinese spying targeted Huang
• Huang admitted personal misconduct and apologised to family and colleagues

Nvidia CEO Jensen Huang was making a strong case for doing business with China just weeks before his company launched an investigation into whether he had been targeted by a Chinese intelligence operation.

In an interview filmed less than a month ago with Bloomberg's Emily Chang for an upcoming episode of The Circuit, Huang defended engaging with the Chinese market, argued that the US should continue serving customers there and criticised the restrictions that have limited Nvidia's access to the country.

The interview has taken on fresh significance following reports that US intelligence officials suspect Alice Huang, a former executive at Singapore-based Megaspeed International, was recruited by Beijing to cultivate a relationship with the Nvidia chief and gather information about him.

Huang has since admitted to being unfaithful to his wife and apologised to his family and colleagues. Nvidia's board has also launched an independent investigation into reports that its CEO was the target of a foreign intelligence effort. Huang has said he will cooperate fully.

'CHINA IS NOT OUR ENEMY'

In the Bloomberg interview, Huang said he had tried to persuade US policymakers of the importance of continuing business engagement with China.

"I did my best to inform the policymakers in the United States of the importance of engaging the Chinese market and making sure that we serve that market for as long as we can," he said.

He then acknowledged that the US approach had created a difficult situation for the chip industry.

"I think we made a mistake, and this mistake is hard to unwind, but I did my best. That's all I could do," Huang said.

He also argued that China should not be viewed as an enemy despite the competition between the two countries in artificial intelligence.

"There are more Chinese AI researchers than any other nation in the world, and many of them working at the labs," he said. "I've been very clear that even though, although we compete against China, they're not our enemies."

Huang said the two countries needed to maintain dialogue on artificial intelligence, particularly because of concerns around the technology's safety.

"If we care deeply about the safety of the world with respect to artificial intelligence, then of course we must open dialogues. We must work with them in every possible way," he said.

HUANG DEFENDED CHINA'S RIGHT TO PURSUE PROSPERITY

During the interview, Huang was also asked whether there was anything China could do that would make him believe Nvidia should stop selling its chips to the country.

He responded that there were several things China could theoretically do, but described its leadership as pragmatic.

"They want what's in the best interest of their nation and their people. They want to be successful. The United States wants to be successful," he said.

"We want America to be rich. They want China to be rich. We should respect that aspiration," he added.

Huang also defended China's economic progress, saying its efforts to improve prosperity had benefited people across the world.

"One of the best things that they've done, of course, is lifted the opportunities and the prosperity of hundreds of millions of people on earth. That's been great for every country, including ours," he said.

WHY THE INTERVIEW IS BACK IN FOCUS

Huang's comments are now being viewed against the backdrop of allegations involving Alice Huang, a former executive at Singapore-based Megaspeed International, a company that buys Nvidia chips.

The New York Times reported that US intelligence officials believed Alice Huang had been recruited by China's Ministry of State Security to collect information on the Nvidia CEO and potentially influence access to advanced American AI chips. The allegations were based on information from unnamed sources familiar with US intelligence reporting.

Megaspeed has also faced scrutiny over suspicions that it helped China obtain advanced Nvidia chips that were restricted under US export rules. Nvidia has previously said it checked that the company did not illegally send its AI processors to China.

The Nvidia board announced an independent investigation on November 8 into reports that Huang had been targeted by a foreign intelligence operation. A committee of independent directors, assisted by external legal counsel, will oversee the inquiry.

The company said its board currently has no reason to believe that Nvidia's secrets or US national security were compromised, but that it would examine all available information.

Huang, in a message to employees, admitted that he had been unfaithful to his wife and apologised to his family and colleagues. He also said he supported the board's investigation and would cooperate fully.

The Nvidia CEO's interview with Bloomberg therefore offers a closer look at his public position on China and the US restrictions on chip sales at a time when his personal relationship with a business executive suspected of links to Chinese intelligence is under scrutiny.

The investigation will now have to establish whether the reported foreign intelligence effort had any impact on Nvidia, its technology or its business dealings. There is no finding so far that Huang passed confidential information to China or that Nvidia's national security interests were compromised.

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