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How a sex scandal at Nvidia is putting pressure on the White House
· Confirmed
In Short: Nvidia CEO Jensen Huang has admitted to an extramarital affair and apologized to his family and staff, as the company launches an independent board probe into a potential foreign intelligence operation linked to the relationship.
Nvidia CEO Jensen Huang has admitted to an extramarital affair, apologizing to his family and staff in a statement on Sunday. The company has launched an independent board investigation into whether Huang was targeted by a foreign intelligence operation linked to the relationship.
Representative John Moolenaar, who chairs the House Select Committee on China, emphasized the importance of Nvidia and other American AI firms succeeding without jeopardizing national security. He stated that companies should not compromise national security by giving Chinese firms access to their most advanced chips.
The Nvidia boss had direct access to the US president, and the company’s general counsel contacted Commerce Department investigators probing suspected chip smuggling by Megaspeed, a firm linked to the affair. Trump allowed Nvidia to resume sales of certain chips to China last year in exchange for a share of the revenue, but its most advanced Blackwell chips remain off-limits.
The affair has raised concerns about the potential compromise of US national security and the effectiveness of export controls. Nvidia’s board has said it will investigate, and the company’s CFO, Colette Kress, will run Nvidia as interim CEO until a permanent replacement is chosen.
Huang, who co-founded Nvidia in 1993, said he is committed to protecting the company and supporting America's national security. He acknowledged the cost of his actions, stating, “My actions hurt her and our children. There is no excuse for what I did.”
What's confirmed
- On Sunday, Nvidia said its board had launched an independent investigation.
- Nvidia’s stock has already lost about $225 billion in value this month.
- Nvidia's board has said it will investigate, and three congressional committee chairs have asked Jensen Huang to attend a closed-door briefing in Washington on November 18.
- Huang, who co-founded Nvidia in 1993, said that he was "committed to protecting NVIDIA and supporting America's national security".
- "It's important that anyone at the company there be held accountable for that."
What's still developing
- They shut Nvidia out of a huge market and encourage Chinese companies to develop their own alternatives.
- Nvidia chief executive Jensen Huang and OpenAI president Greg Brockman are also expected to attend, according to separate people familiar with the planning.
- Discover the secret world of unlisted shares — analyse India's top pre-IPO companies and invest before they hit the markets Invest in Apple, Nvidia, Microsoft, Tesla and 9,000+ U.S.
- Consumer stocks slide, while Nvidia and AMD hold steadier.
- Treasury yields rose on Tuesday, with the benchmark 10-year Treasury note yield hitting its highest level since July 2007 as investors brace for what may be the first in a series of rate hikes from the Federal Reserve as it tries to tamp down inflation pressures.
- Bond markets around the globe saw yields rise, in part due to continued pressure from rising oil prices, which have boosted expectations for central banks around the globe to raise interest rates.
- Ways and Means Committee Ranking Member Richard E Neal and Senate Finance Committee Ranking Member Ron Wyden are starting investigations into the way Nvidia was allowed to sell these chips.
- A sister company in Malaysia bought at least $4.8 billion of advanced AI equipment containing Nvidia technology between June 2024 and February 2026, according to trade records cited by Implicator.
- Nvidia might have released the Shield TV Pro in 2019, but even that device isn't immune to market pressure.
- "The cost of components, including memory, has increased substantially across the industry," Nvidia says in a statement.
- Pressure is building on Lutnick from across the political spectrum to explain his department's actions.
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