Nvidia's chief executive, Jensen Huang, is under scrutiny after admitting to an affair with a woman suspected by US intelligence of working for Beijing. The relationship, which involves a Singaporean data center executive, has raised concerns about potential foreign influence within the company. US Treasury Secretary Scott Bessent reportedly questioned Commerce Secretary Howard Lutnick about whether the alleged spy-run company should be listed as a national security risk. The Commerce Department denied the interaction, but the situation has intensified scrutiny on Nvidia's operations.
Nvidia's stock experienced a sharp decline following the scandal, but rebounded by nearly 5% on Wednesday. The company's board has initiated an independent investigation to determine if Huang was targeted by a foreign intelligence effort. The affair has also unsettled Taiwan, where Huang was born, and has drawn attention from US cabinet officials.
The scandal threatens Nvidia's ambitions in China, as allegations of a $7.5 billion chip network linked to the CEO have drawn US regulatory attention. Silicon Valley figures, including Elon Musk, have defended Huang, framing the relationship as a personal matter rather than a security issue. The situation remains under investigation, with implications for both the company's reputation and its international business strategy.
