NVIDIA Board Launches Investigation; Jensen Huang May Remain With Restricted Authority

According to Fortune, NVIDIA CEO Jensen Huang has admitted to having an extramarital affair with Alice Huang, a former Megaspeed executive suspected of being a Chinese spy. The NVIDIA board launched an independent investigation on Sunday, stating on the same day that it has confidence in Jensen Huang. On Monday, NVIDIA shares fell as much as 8.8%, closing down approximately 4.3%, wiping out roughly $190 billion from its market cap. Georgetown University Associate Professor Jason Schloetzer told Fortune that the board is not expected to make a "stay or go" decision, but is more likely to opt for "stay but with reduced authority," which would involve appointing a clear second-in-command, communicating the succession plan more openly, and adjusting board seats to demonstrate stronger oversight.

Santa Clara University Associate Professor Jo-Ellen Pozner noted that NVIDIA's management structure is unusually flat, with Jensen Huang having dozens of direct reports, a setup that stifles the emergence of potential successors. Among NVIDIA's 11 directors, three, including Huang, have served continuously since the company's founding in 1993, while another joined in 1997. Pozner described the board as a "captive board," questioning whether it is willing to hold Jensen Huang accountable.

Senators Elizabeth Warren and Jim Banks issued a joint statement on Monday demanding a response from NVIDIA and calling for tighter export restrictions on advanced AI chips to China. NVIDIA and Jensen Huang are also facing a proposed shareholder class action lawsuit alleging they misled investors regarding Huang's relationship with Alice Huang. Trump stated that the FBI is investigating the nature of the relationship. A NVIDIA spokesperson told Axios that Jensen Huang is committed to continuing as CEO without interruption. Polymarket traders see a 16% probability that Jensen Huang will resign or be removed by year-end.