Jensen

Nvidia CEO Jensen Huang, leader of one of the world’s hottest chipmakers, is under immense scrutiny after he admitted to an extramarital affair, and the company’s board said it plans to investigate him in light of recent reporting that he was the target of a foreign intelligence effort.

The stunning admission follows a series of reports that Nvidia’s leader was targeted by former Megaspeed International executive Alice Huang, who the U.S. government suspects was recruited by a Chinese spy agency. The CEO previously denied having anything but a “normal” relationship with the woman.

Analysts say this will prompt calls for closer examination of tech companies’ dealings with China.

“This is a black eye moment for Jensen and will spark multiple congressional inquiries at a minimum and will create an overhang on the stock for a myriad of reasons,” said Daniel Ives, partner and senior managing director at merchant bank Yorkville Ives & Co. in an equity research note. “This will also increase major scrutiny regarding selling chips to China, which remains a key battleground issue in DC,” wrote Ives, who has an “outperform” rating on the stock.

Nvidia’s board said in a statement on Sunday that it has confidence in Huang and his leadership team. On Sunday in after-hours trading, Nvidia’s stock was $188.70 a share, up about 1%.

“While the Board has no reason to believe that either national security or NVIDIA secrets were compromised, the Board’s inquiry will examine all available information,” Nvidia’s board said.

In a staff memo, Huang apologized to his family and Nvidia employees.

“I was unfaithful to my wife,” Huang wrote. “My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry.”

Huang wrote that he is committed to protecting Nvidia and supporting America’s national security, adding that he is “proud and grateful to be an American” and supports the investigation.

The transgression blemishes Huang’s leadership, which has been admired by many people in Silicon Valley. Huang, a former microprocessor designer and Denny’s dishwasher, discussed the idea behind Nvidia inside a Denny’s in San Jose with fellow entrepreneurs Chris Malachowsky and Curtis Priem. They co-founded the Santa Clara-based chipmaker in 1993.

Since then, Huang’s profile has risen to the status of Apple co-founder Steve Jobs, with thousands of people gathering to hear his keynotes.

The company’s valuation has risen dramatically in recent years alongside AI’s boom. The company reached a record market capitalization of nearly $5.8 trillion in October. That has slipped below $5 trillion, however, weighed down by concern about the sustainability of AI infrastructure build-out.

“It certainly is going to put a cloud over Jensen and Nvidia for a while,” said Rob Enderle, principal analyst at advisory services firm Enderle Group, adding that Nvidia sells products to the U.S. Department of Defense. “If it turns out that he was intimate with the Chinese spy, Nvidia could face some pullback from the U.S. government.”

The company has no public succession plan, and Huang has no obvious heir apparent. He has repeatedly said he wants to continue in his role for decades and has created an informal organizational structure around him that eschews a conventional hierarchy. Instead, his direct reports are tasked with rapidly implementing his decisions.

Huang has said that this system gives his company the flexibility to react to rapid changes in technology and remain agile. But it has also created a situation where there’s no replacement ready to step in and take over Huang’s relentless schedule.

Concerns that sensitive information might leak through Nvidia’s contacts with China have fueled calls for investigations and greater scrutiny of Huang and the company, ratcheting pressure in what has already been a difficult geopolitical balancing act.

“The big issue is China is all out in everything they can do to try to compromise U.S. security, whether it’s running a honeypot scheme or whether it’s blackmailing or extorting existing employees across U.S. firms,” said Ray Wang, principal analyst at Constellation Research. “The issue here is if the extortion resulted in Nvidia making policies or the CEO making policies that would compromise national security. That’s what’s at stake.”

Legislators, including Sen. Chris Coons (D-Del.), said Congress will look into these relationships.

“The more I learn about the insane relationship between the Trump Administration, Chinese spies, and AI billionaires, the more I’m convinced there is nothing this administration does that isn’t corrupt,” Coons wrote on X on Saturday. “Congress will investigate and get answers.”

The White House did not immediately return a request for comment on Coons’ statement or Nvidia’s board investigation.

While Nvidia is allowed to ship a limited range of products to China under a licensing program granted by the current Trump administration, Beijing has restricted imports of the chips — an impasse that continues to curb the chipmaker’s sales in the world’s second-largest economy.

Megaspeed, based in Singapore, has been accused of breaking U.S. export restrictions and smuggling Nvidia chips to China. Huang had told Bloomberg that his contacts with Megaspeed employees were typical of business relationships he has with many Chinese customers and executives.

Bloomberg contributed to this report.

United States-based chipmaker Nvidia is investigating its chief executive officer, billionaire Jensen Huang, after he confirmed he had an intimate relationship with a woman accused of working for Chinese intelligence.

In an announcement on Sunday, Nvidia said the probe would be conducted by a “committee of independent directors” with outside counsel.

“While the board has no reason to believe that either national security or Nvidia secrets were compromised, the board’s inquiry will examine all available information,” Nvidia’s board of directors said.

It said the board continued to have “confidence in Jensen and his leadership team”. Huang will continue to lead Nvidia during the probe.

The investigation follows a report in The New York Times last month that Jensen may have been the target of a Chinese espionage plot.

China and the US have been in competition to dominate key tech sectors like artificial intelligence (AI).

Amid the AI boom, Nvidia has seen demand for its chips and programming interfaces explode, resulting in the company being valued in the trillions of dollars.

For years, the US has sought to restrict the export of advanced chips to China, fearing the Asian superpower could gain an edge over its technology and military sectors.

But on October 29, The New York Times said it had obtained exclusive information that a Chinese woman named Alice Huang, or Huang Le, sought to cultivate close ties with Jensen Huang in an effort to glean information about Nvidia’s technology.

The Chinese Embassy in Washington, DC, has denied any allegations of spying in the case.

The New York Times also reported that Alice Huang’s employer, Megaspeed, had become one of Nvidia’s largest buyers, purchasing some $4.8bn in equipment from the US firm.

Jensen Huang’s ties to Alice Huang, who is of no relation, spurred fierce bipartisan backlash in the US Congress in the aftermath of the report.

“For months, bipartisan members of Congress have raised concerns about NVIDIA’s advanced AI chips going to China,” Democratic Senator Elizabeth Warren wrote in a statement.

“NVIDIA’s Jensen Huang and NVIDIA’s board owe Congress answers. And we need to pass bipartisan legislation we have ready to stop advanced American technology from going to China.”

Republican lawmakers in the House of Representatives also called on Huang to appear and testify before Congress about the affair on November 18.

“It is vital that Congress determines the extent to which US national security has been placed at risk,” Republicans John Moolenaar, Brian Mast and Rick Crawford said in a statement.

In an email to Nvidia staff on Sunday, Huang had admitted to having an extramarital relationship.

“I was unfaithful to my wife. My actions hurt her and our children. There is no excuse ‌for what I did,” Huang said.

Nvidia has grown rapidly in recent years with the rise of AI, producing chips for large language models developed by companies like OpenAI, Anthropic, Meta and Google.

Huang has also been closely working with US President Donald Trump since the Republican leader returned to office in 2025.

In August of that year, the Trump administration announced it would take a 15 percent cut of certain Nvidia chip sales to China.

Trump reportedly bought as much as $1.6m in Nvidia stock and sold about $1m in August, ahead of November’s midterm elections.

After the midterm races last Tuesday, stocks for AI-related companies, including Nvidia, tumbled in reaction to widespread Republican losses.

Trump has pushed back against calls to regulate AI companies, but many Democrats during the midterms campaigned on placing restrictions on the companies, including on the construction of data centres.

Nvidia lost $450bn in market value in a single trading day last week, but it rebounded on Friday, regaining 4 percent of its losses.