Nvidia CEO Jensen Huang admits affair; board to probe whether he was targeted by foreign intelligence

Nvidia CEO Jensen Huang has admitted to an extramarital affair in a 257-word memo to employees and said the board is launching an investigation. Huang, 63, said: "I was unfaithful to my wife. My actions hurt her and our children. There is no excuse, and I am deeply sorry." The admission follows months of media reports that he had a close relationship with a woman suspected of being a Chinese spy who previously worked at a Singapore-based client company. Huang had previously described the relationship as "normal."

Board Launches Independent Investigation

Nvidia's board said in a Sunday statement that it will form an independent director committee and hire outside legal counsel to investigate the matter. The company said the investigation will cover reports that "Huang became a target of a foreign intelligence agency," but that "there is no reason to believe national security or Nvidia confidential information has been compromised." Following the announcement, Nvidia's perpetual futures-linked shares fell about 2.9%.

In the memo, Huang expressed support for the investigation: "I love my country and my company, and I am committed to protecting Nvidia and supporting U.S. national security." He also asked the public to respect his family's privacy.

Turmoil at the Center of the AI Market

The controversy comes as Nvidia occupies a central position in the AI market. The company's market capitalization reached a historic peak of nearly $5.8 trillion in October and has since fallen below $5 trillion. Huang is known for "Jensen mania," wearing his signature leather jacket while promoting AI technology worldwide, and has been involved in advancing a $500 billion AI infrastructure investment plan.

Bernstein analyst Stacy Rasgon noted that the incident highlights the "key person risk" facing Nvidia: "Nvidia is not an ordinary company, and Jensen Huang is not an ordinary CEO. He is Nvidia. He personally sets the long-term strategic direction and controls most of the company's decisions."

No Public Succession Plan

Nvidia, headquartered in Santa Clara, California, has no public succession plan, and Huang has said he hopes to remain in the role for decades. The company uses an unconventional organizational structure in which his direct reports are responsible for rapidly executing his decisions.

Woman Linked to Megaspeed

The woman involved is Alice Huang, a former executive at Megaspeed International, whom the U.S. government suspects was recruited by Chinese intelligence agencies. Megaspeed, headquartered in Singapore, has been accused of violating U.S. export restrictions by smuggling Nvidia chips to China. Huang previously told Bloomberg that contact with Megaspeed employees was normal business interaction.

Nvidia is permitted to export limited products to China under a Trump administration license, but Beijing's restrictions on chip imports continue to affect the company's sales in the world's second-largest economy. Huang has long advocated allowing AI processor sales to China, arguing that a closed market would push China to develop an independent AI capability.

Source: Bloomberg