Chinese media denies Beijing's link to Jensen Huang's affair, accuses the US media of a fabricated spy narrative, and warns the issue may hurt trade relations (Bloomberg)

In a 257-word memo to employees, Nvidia CEO Jensen Huang admitted that he had an affair and the company is launching an investigation. This marks a crisis unlike any in Nvidia's three-decade history, following months of reports about the CEO's relationship with a suspected Chinese spy. Huang, 63, apologized, stating that his actions hurt his wife and children and there is no excuse for what he did.

The admission intensifies the controversy surrounding the AI market leader, a sector already rocked by concerns about a slowdown in data center spending. Nvidia, one of the world's most valuable companies, makes chips crucial to AI computing equipment. Huang, the AI field's biggest cheerleader, has been instrumental in promoting the technology's adoption as a new industrial revolution.

The company also plays a key role in financing AI infrastructure and has worked with major Wall Street firms on a US$500 billion effort to help build out equipment. Huang will remain CEO pending the investigation results, but the incident marks a significant downfall for an AI evangelist in a delicate moment. Analysts fear the news may bring the stewardship of one of America's most important companies and the architect of the US AI trajectory under debate.

The investigation will address reports that Nvidia's leader was targeted by a foreign intelligence effort, though the board has no reason to believe national security or Nvidia secrets were compromised.