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Artificial intelligence (AI) giant Nvidia Corp. suffered a major market setback as its board launched an independent investigation into Chief Executive Officer Jensen Huang following his public admission of an extramarital affair with an alleged Chinese spy.
The revelation triggered a sharp sell-off in early and regular trading sessions, wiping out approximately $250 billion in market value as shares fell by nearly 4% to 8%.
The market turmoil erupted after media reports disclosed that U.S. intelligence agencies suspect Alice Huang (also known as Huang Le) of operating as a spy for Beijing. Alice Huang served as managing director of Megaspeed, a Singaporean cloud company and Nvidia partner currently under scrutiny over whether it helped bypass U.S. export controls on advanced AI semiconductors.
According to reports, U.S. Secretary of State Marco Rubio drafted a classified memorandum to senior Washington officials warning that the Nvidia chief was engaged in a close relationship with an alleged Chinese intelligence asset.
In response, Nvidia’s board of directors announced an independent probe led by outside counsel. The board stated that while it currently has no reason to believe national security or corporate trade secrets were compromised, an inquiry is necessary given reports that its CEO was targeted in a foreign intelligence effort.
In an internal email to employees, Jensen Huang admitted he was “unfaithful” to his wife, apologizing to his family and colleagues. Huang stressed that he is “committed to protecting Nvidia and supporting America’s national security” and pledged full cooperation with the board’s review.
Congressional leaders have escalated scrutiny, with the U.S. House Foreign Affairs Committee requesting Huang to appear for a joint closed-door briefing to detail his interactions with Alice Huang and assess potential technology transfer risks.
China’s foreign ministry has rejected the allegations as groundless speculation. Despite the market fallout, prominent tech leaders and President Donald Trump have expressed ongoing support for Huang as the investigation proceeds.
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