Treason and suspicion of espionage. What is known about the scandal with the head of Nvidia
The head of Nvidia has admitted to cheating on his wife after reports of his alleged affair with a Chinese woman, whom intelligence agencies believe to be an agent of Beijing. What is known about the scandal and what it threatens the largest manufacturer of AI chips – in the material RBC
How did the scandal begin
On October 29, The New York Times reported that American intelligence agencies suspected Chinese businesswoman Alice Huang of passing information to Beijing. During the observation, it turned out that she maintained a close relationship with the founder and CEO of Nvidia Jensen Huang.
Huang, 63, founded Nvidia with two partners in 1993 and has led the company ever since. Under his leadership, Nvidia became the largest supplier of processors for artificial intelligence, and its capitalization by November 2026 reached $ 4.5 trillion.
Alice Huang previously ran Singapore-based Megaspeed, which buys servers with Nvidia processors and leases them to customers, including Chinese ones. According to Bloomberg, among its customers was Alibaba. The NYT reported that in less than two years, Megaspeed acquired equipment with Nvidia technologies worth at least $4.8 billion.
Huanga and Alice have been seen together repeatedly at public events. According to CNA, they attended a dinner in Taipei in June 2024. AFP video in May 2025 shows Huang hugging a woman, kissing him, and later leaving the restaurant together. In an interview with Bloomberg on October 30, 2026, Huang called the contacts with Alice a normal business relationship.
US authorities are checking whether Megaspeed helped bypass export restrictions on the supply of AI chips to China. Since 2022, Washington has restricted exports of advanced AI chips to Beijing, fearing their use in military technology.
On November 6, the Financial Times reported that, according to an intelligence memo, Alice Huang allegedly recruited Chinese intelligence agencies to gather information about Nvidia and possibly influence the position of its head of chip supply in China.
How Nvidia, Trump and China Reacted
On November 8, Jensen Huang published an appeal to employees in which he admitted to adultery. “I was unfaithful to my wife. My actions hurt her and our children. There's no excuse. I am very sorry, he said, without revealing with whom he was in a relationship.
Since 1985, the businessman has been married to Lori Huang, whom he met in college. The couple have two children, Madison and Spencer, both working for Nvidia.
The board of directors of Nvidia announced an independent investigation into a possible intelligence operation against the CEO. The audit will be conducted by independent directors with the participation of external lawyers. There is no reason to believe that Nvidia’s state secrets or confidential information were compromised. The Board of Directors expressed confidence in Huang, who will continue to lead the company.
According to the NYT, US President Donald Trump received information about the situation around Huang about a year before the publication, but took no action. Later, he called the top manager “a decent person” and praised his contribution to the development of the country. He added that he had not discussed the charges with him. Asked if he regretted his inaction, Trump said: "I think he probably has an excuse." You have to hear it,'.
China's foreign ministry called the spying allegations "baseless speculation" and an attempt to "denigrate and defame" the country.
How the business, the market and what threatens Nvidia
By November 9, Nvidia shares were down more than 6% on the premarket in the United States and at a low of $176.26. The scandal was commented by entrepreneurs and investors. Elon Musk agreed with Sequoia Capital partner Sean Maguire, who called Huang's move "incredibly stupid," but stressed its irreplaceability for the American AI industry.
Chris Weston, head of research at brokerage Pepperstone, believes that it is unlikely that Huang, whom he called the “godfather of AI”, will be removed from the post. “If we really thought he was going to resign... The stock would collapse - frankly, it would be a real disaster, he said.
Analysts interviewed by Reuters differed in their assessments of the consequences of the scandal. Future Fund manager Gary Black, by contrast, questioned whether Huang would be able to keep his post. He noted that the founder of Nvidia does not have an obvious successor, and the uncertainty around the future leadership may force investors to reduce investments in the company.
Ryu Yong Ho, senior analyst at NH Investment & Securities, warned that the protracted investigation could lead to the postponement of Nvidia’s investment decisions, delays in deliveries and the release of new products, affecting the entire semiconductor industry.
What happens next
On November 17, Nvidia will release quarterly reports. The next day, Huang is expected to hold a closed-door congressional briefing to explain how Nvidia protects sensitive information from foreign intelligence agencies. The businessman must confirm his participation by November 11. As long as he keeps his post.
