Jensen Huang’s Position at Nvidia Uncertain Amid Allegations

Jensen Huang’s leadership at Nvidia faces uncertainty following allegations of a second extramarital affair, which compounded an ongoing scrutiny related to a supposed espionage scandal. These developments have raised concerns from Washington to Wall Street.

On Sunday, Nvidia’s board started an independent inquiry into reports claiming Jensen Huang was targeted by foreign intelligence. The board initially stated they had no reason to believe that national security or Nvidia’s secrets were at risk. They expressed confidence in Jensen Huang and his leadership team. However, by Wednesday, the situation had evolved.

The Wall Street Journal, citing sources familiar with the situation, reported that the board may decide to remove Jensen Huang due to two extramarital affairs, one allegedly involving a suspected Chinese spy. Meetings could happen as early as Wednesday. Newsweek sought Nvidia’s comment via email that same day.

Emerging Allegations

The New York Times, supported by testimonies from five Nvidia employees, revealed details about a relationship between Jensen Huang and Kimberly Powell, Nvidia’s vice president of health care, during its developer conference in March. Witnesses mentioned they filmed them behaving affectionately at a San Jose hotel, although the Times did not verify the footage.

Those informed about the incident reported that Jensen Huang’s security team isolated the person who recorded it, offering a nondisclosure agreement. When contacted by the Times, Jensen Huang declined to engage in conversation, and Kimberly Powell did not respond to inquiries. Both are married to other partners.

The earlier Times report indicated U.S. intelligence concluded that Alice Huang, linked to former Nvidia chip buyer Megaspeed in Singapore and close to Jensen Huang, was allegedly gathering intelligence for Beijing. The two are not related. The Commerce Department’s inquiry into Megaspeed’s potential routing of Nvidia chips to Chinese users has involved the Justice Department’s National Security Division, which is also investigating Alice Huang. Megaspeed, as well as Chinese authorities, have denied these allegations.

Admissions and Reactions

Jensen Huang admitted to the affair on Sunday, addressing Nvidia employees without identifying the woman involved. He acknowledged the impact on his family, stating there was no justification for his actions. Nvidia confirmed his intention to continue leading as CEO.

At a subsequent briefing, President Donald Trump confirmed a call with Jensen Huang, affirming his trust in him and mentioning that the FBI was looking into other aspects of the issue. Trump described Huang as honorable.

As the possibility of Jensen Huang’s removal looms, CBS News affirmed the Trump administration’s awareness of the saga. Meanwhile, bipartisan legislative figures have demanded further inquiry. Senator Elizabeth Warren requested Huang’s testimony before the Senate Banking Committee, which he declined.

In a joint statement, Senators Warren and Jim Banks raised concerns about Nvidia’s export approvals for AI chips to China, and the relationship’s implications, prompting questions Nvidia needs to address.

A class-action lawsuit in the U.S. District Court for the Northern District of California accuses Nvidia and Jensen Huang of not disclosing the affair, which allegedly inflated the company’s stock value.