Nvidia CEO Jensen Huang Admits Affair as Board Opens Probe

The espionage question

According to people familiar with the matter, US officials wrote a memo this year, based on intelligence, saying Huang had been romantically involved with Alice Huang, an executive at Megaspeed. The Singapore-based company is an Nvidia customer. US intelligence believes she was recruited by China's Ministry of State Security. The memo was drafted shortly before President Donald Trump travelled to Beijing for a summit with Xi Jinping. Washington was already investigating Megaspeed over suspected smuggling of Nvidia chips into China.

Nvidia had earlier dismissed suggestions of an improper relationship, calling the interactions "nothing unusual or unexpected" for a customer. A committee of independent directors, assisted by outside lawyers, will now lead the inquiry. The board said it has no reason to believe national security or Nvidia secrets were compromised, but that it will examine all available information.

Politics and markets

Huang has built a close relationship with Trump, which has irritated national security officials who think he is too willing to sell advanced chips to China. Trump called him an "amazing job" performer for the US and "an honorable guy," adding he had not spoken to Huang about the matter. Elon Musk publicly backed him. Republican John Moolenaar, who chairs the House China committee, said Huang must address national security concerns before Congress.

Nvidia's Frankfurt-listed shares fell more than 6 percent in early Monday trading. The company's fortunes are unusually tied to its CEO, who co-founded it in 1993, acts as its chief salesman abroad and directly manages dozens of reports. Under him Nvidia's valuation grew from about $1 trillion in 2023 to $4.5 trillion. The board inquiry and the possible congressional testimony are the next steps to watch.