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Nvidia CEO Admits Affair with Alleged Chinese Spy, Shares Plummet

Updated 10:45 PM ET · 8:04 PM ETConfirmedShare via:          

Technology Desk

In Short: Nvidia's CEO Jensen Huang admitted to an affair with a Chinese businesswoman, potentially a spy, leading to a board investigation and sharp stock decline.

Nvidia CEO Admits Affair With Alleged Chinese Spy - Inside Games Daily. Inside Games

Nvidia's CEO Jensen Huang admitted to an affair with a Chinese businesswoman, Alice Huang, who may have been a spy, prompting the company's board to launch an independent investigation. In a company-wide memo, Huang acknowledged his unfaithfulness to his wife and expressed his willingness to cooperate with the inquiry.

In pre-market trading, Nvidia’s shares tumbled sharply, and when the markets opened, the shares were down by nearly 8 per cent to $171.80, according to BBC. The company's board expressed confidence in Huang's leadership team and stated that he would continue leading the company.

The affair and potential espionage allegations have raised concerns among Nvidia's partners and investors. Hyundai Motor Group and LG, which are collaborating with Nvidia on autonomous driving, data centers, and smart factories, could face uncertainty if the investigation uncovers any security issues or technology leaks.

The Washington Post reported last month that Nvidia donated $25 million to the construction of the White House's controversial new ballroom, with other tech companies such as Apple, Microsoft, and Palantir also making contributions. This donation has drawn attention amid the current controversy.

The investigation could have broader implications for Nvidia's business practices and partnerships, particularly with Korean companies. If the probe uncovers any security issues, Korean partners may need to review their business plans built around their partnerships with Nvidia.

What this adds

Background

What's confirmed

• The admission comes after more than a week of reporting by The New York Times, which published a story (opens in new tab) Oct. 29 stating that U.S. intelligence officials had concluded that Alice Huang, an executive at Singapore-based Nvidia customer Megaspeed, worked as a Chinese spy and had grown close to Jensen Huang.

What's still developing

• The investigation comes after media reports claimed that Jensen had a relationship with a Chinese businesswoman, Alice Huang, who was formerly a top executive of a Singaporean data centre company that works with Nvidia, and allegedly passed the information to intelligence services in Beijing.
• Notably, shares of Nvidia had hit a lifetime high in October.
• The best tech deal this week The Apple iPhone 18 Pro is free right now with T-Mobile Nvidia's board of directors has stated that it is opening a new investigation prompted by the reports that Huang was targeted by "a foreign intelligence effort."
• Maguire argued the Nvidia CEO “did something incredibly dumb” but that he is “one of the greatest entrepreneurs of this generation”.
• Yonhap Nvidia CEO Jensen Huang's admission of a romantic relationship with a suspected Chinese spy is raising concerns among Korean industry officials that the controversy could eventually affect the U.S.
• The extraordinary disclosure came Sunday, when Huang apologized to employees in a companywide memo (opens in new tab) and Nvidia’s board announced an independent inquiry into the relationship and whether any company secrets or national security interests had been compromised.
• Latest figures show the company is valued at $4 trillion.

Sources

• Koreatimeslink
• Mashablelink
• Sfstandardlink
• The Guardianlink
• The Indian Expresslink
• WarpBeat — background on Nvidia CEO's Affair with Alleged Chinese Spy Sparks Board Investigation link
• WarpBeat — background on Nvidia Stock Drops as CEO Affair with Suspected Chinese Spy Probed link
• Inside Games — video link
• ABC News — video link
• Morning Brew Daily — video link
• LiveNOW from FOX — video link
• ABC7 — video link