Nvidia Shares Slide After CEO Admits Affair
Jensen Huang admitted an affair with an alleged Chinese spy, triggering a board probe as shares hit lows since March.
TL;DR
- Nvidia shares fell to their lowest since March after CEO Jensen Huang admitted an affair.
- The board launched an independent review but Huang remains in charge with no signs of compromised secrets.
- Trump defended Huang while Republican chairs seek a briefing on national security risks.
Nvidia shares kept sliding Tuesday and hit their lowest level since March after CEO Jensen Huang admitted to an affair with Alice Huang, a former Megaspeed executive the New York Times said was recruited by China’s Ministry of State Security.
The board started an independent investigation but said it has no reason to believe national security or company secrets were compromised. Huang stays in charge and backs the review.
Huang co-founded Nvidia in 1993 and built it into a key supplier of chips for the AI boom. The personal scandal overlaps with ongoing federal probes into chip smuggling and a securities fraud lawsuit.
President Trump defended Huang at a news conference, saying he believes the CEO was unaware of Alice Huang’s alleged ties, though the FBI is also looking into the matter. Three Republican committee chairs asked for a closed briefing on the national security risks.
Huang wrote to employees that he was unfaithful and apologized to his family. He linked the episode to the security concerns raised in reports but did not name Alice Huang.
Nvidia pulled Huang from upcoming events at ElevenLabs and Anthropic. The company has invested in AI startups including Higgsfield and Runway; those firms have not said they plan to return the money.
The Tea
One messy personal scandal just landed on the desk of the company that literally powers most of today’s AI race. With no clear successor and Washington already watching chip flows to China, the board’s findings will matter far beyond Nvidia’s next earnings call.