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Nvidia's board is investigating CEO Jensen Huang after reports of relationships with a Chinese businesswoman suspected by U.S. intelligence of spying for Beijing and a company subordinate. Huang's future at the company remains uncertain.
Nvidia's board launched an investigation into CEO Jensen Huang after reports that he had a close relationship with a Chinese businesswoman whom U.S. intelligence officials believed was spying for Beijing. Huang, 63, has led Nvidia since its founding in 1993 and has no designated successor.
Nvidia's board met to decide Huang's future, according to reporting by CNN and the New York Times cited by La Presse. The board had initially announced on Sunday that it would maintain its support for Huang. Huang acknowledged the weekend that he had been unfaithful to his wife and said he supported the investigation and would cooperate fully.
The relationship with the Chinese businesswoman, Alice Huang, involves a former executive of Megaspeed International, a Singapore-based data center company. Alice Huang was an executive at Megaspeed until November 2023. She and Jensen Huang have no family relationship. Megaspeed said it would cooperate constructively with U.S. authorities. Beijing categorically denied the espionage allegations, calling the narrative invented and accusing Washington of using it as a pretext for a technology blockade.
The New York Times reported that Huang was involved in a second extramarital relationship, this time with a subordinate. Two witnesses say the executive and the woman were seen exchanging affectionate gestures in a hotel in San Jose, California, during an Nvidia conference in March.
Nvidia shareholders filed a class action lawsuit against Huang in California, accusing him of failing to disclose information about the extramarital relationship to investors. Three Republican committee chairs in the House of Representatives requested a closed-door hearing with Huang on November 18. The U.S. Department of Justice is conducting a criminal investigation into Megaspeed.
Nvidia's shares fell nearly 8 percent in after-hours trading on Wednesday, after ceding its place as the world's second-largest market capitalization to Microsoft on Tuesday. The stock has lost a quarter of its value in a little over a month. Nvidia is scheduled to publish its quarterly results on November 17.
The investigation centers on governance and succession risk at one of the world's largest technology companies. Huang is an informal adviser to President Donald Trump on AI, and the case unfolds amid U.S.-China technological rivalry and export controls on Nvidia chips.
Sources
This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.
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Nvidia co-founder Jensen Huang has resigned as CEO, president, and board member after reports of two extramarital affairs, including one with a woman U.S. officials believe is a Chinese spy. CFO Colette Kress has been named interim CEO.
