Nvidia Launches Investigation into CEO’s Affair Amid Spy Allegations

The board of Nvidia announced on Sunday the initiation of an independent investigation into the affair involving CEO Jensen Huang and Alice Huang, an executive at Megaspeed. Alice Huang, who is not related to Jensen, is suspected of being a Chinese spy. This investigation focuses on several controversial statements made by Jensen Huang and Nvidia since 2025, particularly regarding their relationship with Megaspeed.

Back in October 2025, The New York Times reported sightings of Jensen and Alice drinking together at a 2024 industry event. At the time, a company spokesperson clarified that the meeting was standard business: “When Jensen is available, [customers] may ask him to visit to provide updates on the market.” Two months later, Bloomberg reported an investigation by the U.S. government into whether Megaspeed illegally diverted Nvidia chips to China, violating an export ban. Nvidia maintained its relationship with Megaspeed was within legal bounds, stating that it was “a cloud service permitted under the export control rules.”

In October 2026, Jensen Huang affirmed the relationship with Alice was strictly related to business: “Our relationship, our interactions, have been related to Megaspeed, and it was all completely normal and not unusual.” Following allegations of evading export controls, Nvidia told CNBC these claims were thoroughly investigated and found to be false: “The diversion allegations against this regional cloud were thoroughly investigated and debunked last year.”

Jensen Huang subsequently admitted to his employees via email about an affair, raising potential national security issues due to his frequent interactions with President Trump. Nvidia’s board stated they found no reason to believe national security or proprietary secrets were compromised but would review all available information. Nvidia shares fell 4.24% in overnight trading.

U.S. stock markets showed resilience in the face of these developments. Despite volatility, Nasdaq 100 futures were modestly up. European and Asian markets also saw gains with indices like the Stoxx 600 and Nikkei 225 rising. Economic indicators suggested the Fed could raise interest rates with 80% odds, reinforced by strong labor market data from October.

On another note, AI companies currently have significant off-balance-sheet commitments, amounting to $3.2 trillion according to KBRA assessment. This off-balance-sheet commitment involves data center leases and chip purchases, posing potential financial risk.