Nvidia CEO Jensen Huang resigned on Thursday amid allegations that a woman with whom he had an affair had links to Chinese intelligence, triggering uncertainty at the world’s most valuable artificial intelligence chipmaker and raising concerns over the potential impact on the broader technology sector.
The announcement followed a lengthy meeting of Nvidia’s board on Wednesday, which appointed Chief Financial Officer Colette Kress as the company’s acting head. Huang has acknowledged having an affair with a woman identified as Alice Le Huang, who is suspected of having links to Chinese intelligence. The two are not related, despite sharing a surname.
Several media reports have also alleged that Huang was involved with another woman employed by the company. The New York Times separately reported an alleged relationship with Kimberly Powell, Nvidia’s vice president of healthcare, which it said could violate the company’s code of conduct.
The allegations have placed the company at the centre of a controversy spanning US politics, national security, international relations and financial markets. The developments come ahead of US President Donald Trump’s planned visit to China for the Asia-Pacific Economic Cooperation (APEC) summit next week, where he is expected to meet Chinese President Xi Jinping. Beijing has denied any intelligence links to Alice Huang.
Huang had maintained close ties with Trump, whose administration eased restrictions on exports of certain advanced Nvidia chips to China, allowing the company to sell a lower-tier product to Beijing in exchange for a government cut. Huang had previously lobbied against restrictions on advanced chip sales to China, arguing that US companies should retain access to the market amid competition in artificial intelligence.
The controversy has also exposed differences within the Trump administration over technology exports to China. Secretary of State Marco Rubio reportedly alerted Trump to intelligence concerns involving Alice Huang, while Commerce Secretary Howard Lutnick and others supported allowing Nvidia to capitalise on its technological lead through sales to China.
Trump defended Huang on Monday, telling reporters, “I just know Jensen very well. I just think he’s a very honourable man.”
Huang reportedly told the president that he was unaware of any possible links between Alice Huang and Chinese intelligence. Trump has maintained that he had not received an earlier warning about the allegations.
The reports have also drawn congressional attention. The House Foreign Affairs Committee has reportedly sought a closed-door briefing from Huang and threatened to issue a subpoena if he does not appear. The controversy could face further scrutiny if Democrats take control of Congress next year.
Huang transformed Nvidia from a maker of graphics chips for gaming computers into a central supplier for the global artificial intelligence industry. Its processors power major AI companies in the United States and other Western markets, making the company a key part of the US technology sector’s efforts to maintain its competitive advantage.
Kress faces the challenge of managing the company during the transition. Huang had maintained tight control over its operations, with around 60 department heads reportedly reporting directly to him. The absence of a clearly defined succession structure could complicate the transition to a permanent chief executive.
As CFO, Kress is understood to have had a broad view of the company’s operations and worked closely with its various divisions. However, she will also be expected to maintain Nvidia’s technological leadership and oversee its expansion amid growing competition.
The uncertainty has weighed on Nvidia’s shares. The stock fell from a record high of USD 243.37 on October 6 to USD 160.98 on Thursday, a decline of nearly 35 per cent, although it recorded a modest recovery in after-hours trading. The fall has also affected broader market indices.
Nvidia, which had been the most valuable publicly traded company in the United States, reportedly lost that position to Apple as the controversy unfolded. Huang also dropped from sixth to 12th place in the Forbes billionaire rankings, with an estimated net worth of around USD 148 billion on Wednesday.
The developments have implications beyond Nvidia because of the AI industry’s heavy dependence on its chips. The sector has been a major driver of the recent stock market rally, and any disruption to the company’s operations could affect technology companies, investors and retirement funds.
Anthropic, one of the major AI companies that relies on Nvidia processors and is reportedly preparing for a public listing, has been valued at as much as USD 1.46 trillion, according to the report.
Even if no trade secrets were transferred to China through Alice Huang, any disruption to the US AI industry could potentially benefit Beijing by affecting the competitive position of American technology companies.
The allegations involving Alice Huang have also attracted attention because of her reported association with Singapore-based company Megaspeed. The New York Times described the company as a shell entity allegedly used to purchase advanced chips while bypassing US restrictions on exports to China.
Alice Huang reportedly worked as a television journalist before moving into banking and later entrepreneurship. US intelligence agencies had raised concerns several months ago about her possible links to China’s Ministry of State Security, according to media reports. Rubio is said to have alerted Trump to the concerns.
Huang has been married to Lori Huang for around four decades. The couple met while studying engineering. He has reportedly issued a public apology to his wife over the affair.
Huang was not initially included in the list of US business leaders expected to accompany Trump on his earlier visit to China, reportedly amid questions surrounding his position. However, after learning of the omission once the trip was under way, Trump arranged for Huang to meet Air Force One during a refuelling stop in Alaska and travel with him.
(IANS inputs)
