Nvidia faces deepening scrutiny over China chip ties, CEO affair

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The controversy surrounding Nvidia CEO Jensen Huang's affair with a suspected Chinese spy escalated on several fronts on Tuesday (Nov 10) as allegations emerged that his…

The controversy surrounding Nvidia CEO Jensen Huang's affair with a suspected Chinese spy escalated on several fronts on Tuesday (Nov 10) as allegations emerged that his relationship with Alice Huang aided at least US$7.5 billion in Nvidia chip shipments to China.

Nvidia shed about US$430 billion in market value over two sessions as new reports deepened questions about CEO Jensen Huang's relationship with a Chinese businesswoman alleged to be a spy for Beijing.

The controversy escalated on several fronts on Tuesday (Nov 10) as allegations emerged that Huang's relationship with Alice Huang aided at least US$7.5 billion in Nvidia chip shipments to China and that US Secretary of State Marco Rubio had previously briefed President Donald Trump on the affair.

Senate Democratic Leader Chuck Schumer demanded answers from the administration and tighter curbs on chip exports to China, while the company's independent directors hired outside counsel to investigate.

Republican US Senator Kevin Cramer from the Senate Banking Committee called on Huang to step down as CEO.

"The potential for extortion is so tremendous that something as sensitive as Nvidia chips, I just think he's got to go," Cramer told Politico late on Tuesday.

The allegations have turned Huang's personal conduct into a broader risk for Nvidia, raising questions about the company's governance and its dependence on the CEO who has led it for more than three decades and built it into the dominant supplier of AI chips. He owns about 3.6 per cent of the company — but does not have majority voting control — and runs an unusually flat organisation in which dozens of executives report directly to him.

The FBI is separately examining whether 63-year-old Huang was targeted by a foreign intelligence operation. Huang has told employees he was unfaithful to his wife, but provided no details about the relationship. China's foreign ministry has said the spy accusations are "groundless."

Huang apologised to top executives at a…

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