An unexpected crisis has rocked Nvidia, one of the world's most powerful technology companies and a key player in the artificial intelligence revolution. Its founder and CEO, Jensen Huang, resigned on November 12, following revelations of extramarital affairs and suspicions involving a Chinese businesswoman who is being investigated by US authorities for possible links to China's spy services.
The case has taken on dimensions far greater than a personal scandal, as Nvidia's trade relations with China, exports of advanced microchips and compliance with US restrictions on technology transfers have also been put in the spotlight. According to data reported by CNN, the company's shares have fallen by 12.75% in a week, causing a contraction of about $573 billion in market value.
Who is Jensen Huang and how did he build the Nvidia empire?
Huang founded Nvidia in 1993, along with Chris Malachowsky and Curtis Priem. The company started out making graphics processors for video games, but with the development of artificial intelligence, these components became the main technology for training and running advanced models. With the rise of applications like ChatGPT, Nvidia became one of the most important suppliers to technology giants, and Huang became one of the most influential figures in Silicon Valley and in American technology policy.
Chinese businessmen and suspicions of espionage
At the center of the scandal is Alice Huang, a Chinese businesswoman and former head of Megaspeed International, a Singapore-based company. She is not related to Jensen Huang, despite their shared last name. Their relationship had attracted attention since 2025, but the situation escalated in late October 2026, when American media reported that intelligence agencies were examining the businesswoman's possible ties to Chinese services.
The suspicions are related to the possibility that the personal relationship was used to gain access to sensitive information or influence Nvidia's decisions. However, it has not been proven so far that Alice Huang spied for China or transmitted secret information to Beijing. On November 8, Jensen Huang publicly admitted that he had been unfaithful to his wife and apologized to his family and company employees, without disclosing the identity of the person with whom he had an affair.
Microchip sales in China also under investigation
The scandal has become particularly sensitive because of the technological competition between the US and China. Nvidia's processors are essential for the development of artificial intelligence, but Washington has imposed restrictions on the export of the most advanced models to the Chinese market. Megaspeed has been involved in the investigation into the possibility that Nvidia's processors ended up in Chinese companies through intermediaries. The company has denied the allegations, and there is no public evidence that Jensen Huang intentionally facilitated any illegal technology transfer.
The issue has reached the highest levels of the US administration, including Secretary of State Marco Rubio and other officials. President Donald Trump has expressed his confidence in Huang, while Congress has demanded explanations for how the risks associated with exports to China have been handled.
Resignation after revelations about another relationship
The situation was further complicated by reports of another extramarital affair between Huang and an Nvidia employee who was under his command. The company’s board had initially launched an independent investigation and said there was no evidence of a trade secret leak or national security breach. But after the new developments, executives met to consider his future, leading to Huang’s resignation as CEO and board member. A Reuters report, published on November 14, added another element: Huang allegedly presented his relationship with Alice Huang to senior executives as a routine business contact. This has raised questions about whether the board was fully informed about the situation.
$573 billion wiped off market value
The departure of the founder has caused great uncertainty among investors. Within a week, Nvidia shares lost 12.75%, reducing the company's capitalization by about $ 573 billion. The concern is not only related to the scandal, but also to the fact that Nvidia is a key link in the global artificial intelligence industry. Companies such as Microsoft, Amazon, Google and Meta rely on its processors for their data centers.
Who will run Nvidia?
After Huang's departure, the company's interim leadership was taken over by Colette Kress, who has been Nvidia's chief financial officer since 2013. The board is expected to consider internal and external candidates to select a permanent leader. Meanwhile, US authorities are examining the Chinese businesswoman's dealings, the role of the company Megaspeed and compliance with export restrictions. Shareholders have also filed lawsuits, claiming that they were not sufficiently informed about developments. Nvidia's crisis comes at a time when billions of dollars are being invested in artificial intelligence and the departure of the man who led the company for 33 years has raised questions about its future and the entire industry. However, it remains to be seen whether the investigations will prove concrete violations or whether the scandal will remain mainly a crisis of trust and leadership.
