Nvidia’s board of directors may meet as early as Wednesday to decide the future of co-founder and CEO Jensen Huang, the Wall Street Journal reported Wednesday.
This leadership crisis follows revelations regarding two extramarital affairs, one of which involved a woman whom U.S. intelligence officials believe was recruited by China’s Ministry of State Security spy agency, Ars Technica reported.
Nvidia loses stock value amid leadership risks
Nvidia shares fell 8.6 per cent in after-hours trading following the reports, Ars Technica noted. Including Wednesday’s selloff, the chipmaker has lost approximately $600 billion in stock market value this week since the board announced its investigation, Detroitnews reported.
Huang’s potential departure would create a leadership vacuum at the roughly $4 trillion company he co-founded in 1993, Detroitnews reported. The company, which was at one point worth $5 trillion, is a dominant supplier of AI chips at the center of U.S.-China technology competition, 247Wallst reported.
The board has hired Wachtell, Lipton, Rosen & Katz to investigate Huang’s relationship with a Chinese spy and the possibility of clandestine chip sales to China, potentially via Singapore, Zonebourse reported.
Gil Luria, the head of technology research at D.A., said that if Huang is found to have violated company policies or broken the law, the board will likely act once they have evidence, Detroitnews reported.
On the odds-making platform Polymarket, the probability that Jensen Huang will no longer serve as Nvidia’s CEO by December 31 has risen to 16%, 247Wallst reported. This figure reportedly hit 20% two days ago, Zonebourse reported.
Allegations of espionage and infidelity
The controversy involves two separate relationships. One was with Alice Huang, an executive at Megaspeed, a Singapore-based Nvidia customer, Ars Technica reported. U.S. intelligence officials believe Alice Huang was recruited by China’s Ministry of State Security, Ars Technica reported. The Wall Street Journal reported that Jensen and Alice Huang had been photographed together in Taipei during 2024 and 2025, France24 reported.
The Information reported that Huang’s relationship facilitated the shipment of at least $7.5 billion in chips to Chinese companies, Source 3 reported. Federal investigators are also examining Megaspeed’s activities and the potential export of advanced chips to China, Source 3 reported.
A second relationship was reported by The New York Times involving Powell, Nvidia’s vice president of healthcare. When asked by The New York Times about his relationship with Ms. Powell, Huang said, “I don’t think you should be talking to me directly.”, Detroitnews reported. He then ended the call, The New York Times reported.
In a memo to employees on Sunday, Huang acknowledged being unfaithful to his wife, Detroitnews reported.
“J’ai été infidèle à ma femme”, France24 reported.
Huang also took “full responsibility,” Detroitnews reported.
U.S. President Donald Trump voiced support for the Nvidia chief, calling him “an honorable guy” who had “done an amazing job for our country,” Detroitnews reported. Trump also said that the FBI is investigating the situation, Detroitnews reported. The president and Huang have maintained a close rapport since Trump’s return to the White House, which has made Huang an influential figure regarding U.S. AI policy, Ars Technica reported.
Huang has promised to cooperate with the ongoing investigation, France24 reported.
“Je soutiens l’enquête et je coopérerai totalement”, France24 reported.
Lawmakers seek investigations into Huang
Senior Republicans and Democrats have called for congressional investigations into the Nvidia leader, Ars Technica reported. Huang has advocated for U.S. firms to be permitted to sell more sophisticated AI chips to China, Ars Technica reported.
Specifically, leading House Republicans have requested a closed-door briefing with Huang on November 18 regarding the allegations, Source 3 reported. Huang faces a possible congressional subpoena if he does not comply with the request for a briefing about his close connection to the Chinese businesswoman, Source 4 reported.
Nvidia shareholders have also filed a class-action lawsuit against both Huang and the company, alleging they failed to disclose information to investors regarding his relationship, France24 reported.
In response to questions on X, Tesla CEO Elon Musk said that hiring Jensen Huang “would be an honor,” Ars Technica reported.
Earlier coverage: Nvidia Board Prepares to Decide Future of CEO Jensen Huang