Nvidia’s board of directors is preparing to oust chief executive Jensen Huang following reports of two extramarital affairs, including one with a woman suspected of working for Chinese intelligence, the Wall Street Journal reported Wednesday.
The semiconductor giant is conducting an independent investigation into whether the company’s chief executive was the target of a foreign intelligence operation. The scrutiny comes as the company faces simultaneous pressure from internal misconduct allegations and external geopolitical tensions regarding AI chip exports to China.
The crisis intensified on November 11 when media outlets reported a second alleged affair involving a company executive. According to five former employees cited by The New York Times, Huang reportedly had a relationship with Kimberly Powell, the vice president of healthcare at Nvidia, who reported to him.
Two former employees told The New York Times that the 63-year-old Huang and 48-year-old Powell were filmed showing affection at a hotel in San Jose, California, during an Nvidia conference in March. Both Huang and Powell are married to other people. According to Nvidia’s code of conduct, employees must avoid personal relationships that could lead to conflicts of interest.
This follows earlier reports regarding Alice Huang, a former executive at the Singapore-based firm Megaspeed. NOS reported that U.S. intelligence officials suspected Alice Huang was recruited by the Chinese state security service to gather information on the CEO of Nvidia. A leaked American memo suggests she may have been used to collect intelligence regarding American artificial intelligence chips.
In an email to staff on November 8, Huang admitted to being unfaithful and apologized to his family and colleagues, Notebookcheck noted.
“I remain totally committed to Nvidia and will work to regain your trust,” said Huang.
In his admission, Huang expressed deep regret, stating his actions had caused pain to his wife and children. While the board of directors has expressed confidence in Huang and his leadership, an external investigation is being led by the law firm Wachtell, Lipton, Rosen & Katz.
The investigation into the relationship with Alice Huang is occurring alongside federal scrutiny of Megaspeed. Business AM reported that U.S. intelligence officials suspect Megaspeed may have leaked data to China.
The company has been under observation due to allegations of smuggling advanced Nvidia chips to China in violation of U.S. export restrictions. The presence of unopened packaging suggested the items were not for use in the Malaysian facility. The New York Times reported that Megaspeed, a company with ties to Alice Huang, purchased more than 4.8 billion dollars worth of chips over the last two years.
President Donald Trump confirmed that the FBI is investigating the matter, according to reports. Huang met with the president at the White House, stating he was unaware of Alice Huang’s alleged ties to Chinese intelligence.
The controversy has triggered legal and financial repercussions for the company. Shareholders filed a lawsuit against the company and Huang on November 10, alleging they were misled because the news about the affair with the suspected Chinese spy was not disclosed earlier.
The potential for a leadership change remains a central concern for the industry. The Wall Street Journal reported that the board of directors may meet to decide the future of the 63-year-old chief executive. The Financial Times has said that Nvidia lacks a detailed succession plan, creating a structural vulnerability given Huang’s central role in product development, strategy, and political relations.
Earlier coverage: Nvidia Board Prepares to Decide Future of CEO Jensen Huang