Nvidia board launches probe into CEO Jensen Huang's affair

Nvidia’s board launched an independent investigation into CEO Jensen Huang on Sunday after he admitted to an extramarital affair. The probe threatens the tenure of the executive who co-founded the company more than 30 years ago. Huang faces a potential ouster amid allegations that his partner worked as a Chinese spy for a major Nvidia customer.

The scandal erupted over the weekend and immediately rattled the market. Nvidia shares fell more than 5 percent by midday trading on Monday. This decline occurred as the company navigated a broader sell-off in AI stocks that saw it lose the title of world’s most valuable to Apple late last month.

Huang has been central to the US AI infrastructure buildout. His chips power generative tools like ChatGPT and anchor a $1 trillion industry frenzy. He has personally guaranteed hundreds of billions of dollars in investments for AI startups and data centers. He also lobbied President Donald Trump for looser AI regulation.

Industry allies expressed concern over leadership continuity. Shaun Maguire, a partner at Sequoia Capital, stated that "Jensen is irreplaceable for America’s AI leadership." Bernstein analysts told clients that "Nvidia is not an ordinary company and Jensen is not an ordinary CEO; he IS Nvidia."

Washington officials are pressing Huang to appear before congressional committees to explain the situation. The board’s new inquiry aims to determine the extent of the conflict of interest. No successor has been identified for the world’s second-most-valuable public company.

The board’s move follows public scrutiny of the relationship. US officials allege the partner was an executive at a large Nvidia client. The investigation is expected to review internal communications and financial ties.