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Just when we thought we’d seen it all, one of the AI industry’s most influential figures is caught up in an alleged spying scandal.
What happened: Nvidia CEO and co-founder Jensen Huang admitted to an extramarital affair after reports linked him to a suspected Chinese intelligence operative.
Nvidia’s board has launched an independent investigation into whether he was targeted by a foreign intelligence effort.
In a message to employees, Huang apologised to his wife and children, saying: “There is no excuse for what I did. I am deeply sorry.”
Neither Huang nor Nvidia publicly named his affair partner. The New York Times identified her as Alice Huang, an unrelated Chinese businesswoman whom US authorities reportedly concluded was a Chinese intelligence asset. China has dismissed the allegations as a smear.
The business connection: Alice Huang previously worked at Singapore-based Megaspeed, which buys Nvidia chips. US authorities have scrutinised the company over suspicions that it helped Chinese customers access advanced chips restricted by US export controls. Nvidia maintains that concerns about chip diversion were investigated and debunked.
The market reaction: Nvidia shares closed 4.3% lower on Monday, wiping approximately $190 billion off its market value.
Why it matters: Nvidia supplies the chips powering much of the AI boom, placing it at the centre of the technology rivalry between Washington and Beijing. The allegations raise questions about whether sensitive information could have been exposed.
However, Nvidia’s board says it currently has no reason to believe that US national security or company secrets were compromised.
What’s next: Huang will continue leading Nvidia during the investigation. The board has expressed confidence in him and his leadership team, while Huang has pledged to cooperate fully with the review.
